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Wilson Corporation and Beattie Company Are Computer Companies

Question 93

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Wilson Corporation and Beattie Company are computer companies. Comparative data for 20X1 and 20X6 are given below. Wilson Corporation and Beattie Company are computer companies. Comparative data for 20X1 and 20X6 are given below.   Assume that each 20X1 dollar is equivalent to 1.72 of the 20X6 dollars, due to inflation. Required: a. Compute Wilson's and Beattie's 20X1 and 20X6 revenues per employee in 20X6 dollars. b. Compare Wilson's change in productivity between 20X1 and 20X6 with that for Beattie. Do you note any problems that may require action? Assume that each 20X1 dollar is equivalent to 1.72 of the 20X6 dollars, due to inflation.
Required:
a. Compute Wilson's and Beattie's 20X1 and 20X6 revenues per employee in 20X6 dollars.
b. Compare Wilson's change in productivity between 20X1 and 20X6 with that for Beattie. Do you note any problems that may require action?

Correct Answer:

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a. Wilson
20X1: ($1,175,000 × 1.72)/3,70...

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