# Carlson Automotive Company man

Carlson Automotive Company manufactures fuel-injection systems. It manufactured and sold 60,000 units
in 2018 and 64,000 units in 2019 at \$25 per unit. In 2018, the firm used 75,000 pounds of alloy TPX–45 at
\$7.20 per pound and used 10,000 direct labor hours at an hourly wage rate of \$30. In 2019, the firm used
89,600 pounds of alloy TPX–45 at \$6.80 per pound and used 10,847 direct labor hours at an hourly wage
rate of \$32. The total amount of all other expenses remains the same at \$450,000 each year. Jerry Olson,
CEO, was disappointed that although the total sales increased in 2019, operating income declined from
\$210,000 in 2018 to \$193,616 in 2019.

Required Analyze the following:

Total productivity for 2018 and 2019 as measured in both units and sales dollars.

# Carlson Automotive Company man

Carlson Automotive Company manufactures fuel-injection systems. It manufactured and sold 60,000 units
in 2018 and 64,000 units in 2019 at \$25 per unit. In 2018, the firm used 75,000 pounds of alloy TPX–45 at
\$7.20 per pound and used 10,000 direct labor hours at an hourly wage rate of \$30. In 2019, the firm used
89,600 pounds of alloy TPX–45 at \$6.80 per pound and used 10,847 direct labor hours at an hourly wage
rate of \$32. The total amount of all other expenses remains the same at \$450,000 each year. Jerry Olson,
CEO, was disappointed that although the total sales increased in 2019, operating income declined from
\$210,000 in 2018 to \$193,616 in 2019.

1. Detailed partition of partial financial productivity.
2. Total productivity for 2018 and 2019 as measured in both units and sales dollars.

# Carlson Automotive Company man

Carlson Automotive Company manufactures fuel-injection systems. It manufactured and sold 60,000 units
in 2018 and 64,000 units in 2019 at \$25 per unit. In 2018, the firm used 75,000 pounds of alloy TPX–45 at
\$7.20 per pound and used 10,000 direct labor hours at an hourly wage rate of \$30. In 2019, the firm used
89,600 pounds of alloy TPX–45 at \$6.80 per pound and used 10,847 direct labor hours at an hourly wage
rate of \$32. The total amount of all other expenses remains the same at \$450,000 each year. Jerry Olson,
CEO, was disappointed that although the total sales increased in 2019, operating income declined from
\$210,000 in 2018 to \$193,616 in 2019.
Required Analyze the following:
1. Partial operational productivity of direct material and direct labor for both 2018 and 2019.
2. Partial financial productivity of direct material and direct labor for both 2018 and 2019.
3. Detailed partition of partial financial productivity.
4. Total productivity for 2018 and 2019 as measured in both units and sales dollars.

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