Lorna Corporation and Carol Corporation are moving companies.Comparative data for 20X4 and 20X5 are given below:
$\begin{array}{ll}
&&\text { Lorna } & \text { Carol } \
&&\text { Corporation } & \text { Corporation }\
\text { Sales revenue }&20 \times 4 & \$ 8,400,000 & \$ 4,400,000 \
&20 \times 5 & 9,900,000 & 6.175,000
\end{array}$
$\begin{array}{lll}
\text { Number of employees }&20 \times 4 & 8,000 & 5,500 \
&20 \times 5 & 10,000 & 6,500
\end{array}$
Assume that each 20X4 dollar is equivalent to 1.75 of each 20X5 dollar,due to inflation.Taking inflation into account,what is Lorna Corporation's 20X4 productivity measure in terms of revenue per employee?

Question

Quizplus · Accepted Answer

To calculate Lorna Corporation's 20X4 productivity measure in terms of revenue per employee, first adjust the 20X4 sales revenue for inflation to 20X5 dollars by multiplying by 1.75: $8,400,000 * 1.75 = $14,700,000. Then, divide this adjusted revenue by the number of employees in 20X4: $14,700,000 / 8,000 employees = $1,837.50 per employee.

Lorna Corporation and Carol Corporation Are Moving Companies Number of employees 20×48,0005,50020×510,0006,500\begin{array}{lll}\text { Number of employees }&20 \times 4 & 8,000 & 5,500 \\&20 \times 5 & 10,000 & 6,500\end{array} Number of employees ​20×420×5​8,00010,000​5,5006,500​

Lorna Corporation and Carol Corporation Are Moving Companies $\begin{array}{lll}\text { Number of employees }&20 \times 4 & 8,000 & 5,500 \\&20 \times 5 & 10,000 & 6,500\end{array}$