Problem

Partial Financial Productivity Use the data for Hadley Technology Inc. in problem 16...

Partial Financial Productivity Use the data for Hadley Technology Inc. in problem 16-41 to complete the requirements.

Required (in your calculations use 6 significant digits after the decimal point)

1. Compute the partial financial productivity ratios for 2012 and 2013.

2. On the basis of the partial financial productivity ratios you computed, what conclusions can you draw about the firm’s productivity in 2013 relative to 2012?

3. Separate the change of the partial financial productivity ratio from 2012 to 2013 into productivity changes, input price changes, and output changes.

4. Does the detailed information provided by separating the change of the partial financial production ratio offer any additional insight into the relative productivity for 2012 and 2013?

Reference:

Partial Operational Productivity Hadley Technology Inc. manufactures a scrambling device for cellular telephones. The device’s main component is a delicate part, CT140. CT140 is easily damaged and requires careful handling. Once damaged, it must be discarded. The firm hires only skilled laborers to manufacture and install CT140; however, some are still damaged. Robotic instruments process all other parts. Hadley’s operating data for 2012 and 2013 follow:

Required

1. Compute the partial operational productivity for 2012 and 2013.

2. On the basis of the partial operational productivity that you computed, what conclusions can you draw about the firm’s productivity in 2013 relative to 2012?

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