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The Italian Bakery Company has generated productivity data for the first two quarters of the year....

  1. The Italian Bakery Company has generated productivity data for the first two quarters of the year. Using dollar measures of input and output, compare the total profit and productivity achieved for the first two quarters. Compare productivity of output exclusive of selling price for the first two quarters? Determine the change in productivity (exclusive of selling price) from Q1 to Q2. How does Q2 productivity compare with Q1? What might be done to improve productivity and profitability during Q3

Q1

Q2

Unit selling price

$40

$41

Total units sold

20,000

19,000

Labor hours

18,000

15,000

Labor cost/hr

$12

$12

Material usage (lbs)

10,000

9,000

Material cost/lb

$18

$18.50

Overhead

$38,000

$34,000
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