Period 19 Baker Inc Produced 46 500 Units Using Period Investment Amount 12 100 Period 21 Q34299785

In period 19 Baker Inc. produced 46,500 units using a periodinvestment amount of $12,100. In period 21 the amount produced was56,600 with a period investment amount of $13,350. What is thecompounded per period change in capital investment amountproductivity? Note that data interval between data is more than oneperiod.  

Expert Answer

Period 19

Output = 46500 units

Investment = $12100

Productivity = P19 = Output / Input = 46500 / 12100 = 3.8430

Period 21

Output = 56600 units

Investment = $13350

Productivity = P21 = Output / Input = 56600 / 13350 = 4.2397

Compounded per period change in productivity = (P21 /P19)1/2 – 1

= (4.2397 / 3.8430)1/2 –