BMX Company and Chippy Company are design companies. Data for 2004 and 2009 are
ID: 2445891 • Letter: B
Question
BMX Company and Chippy Company are design companies. Data for 2004 and 2009 are given below.
BMX
Company
Chippy
Company
Sales revenue
2004
$1,175,000
$1,850,000
2009
2,600,000
3,950,000
Number of
employees
2004
3,700
5,550
2009
4,500
8,750
Assume that each 2004 dollar is equivalent to 1.72 of the 2009 dollars, due to inflation.
Required:
1. Compute BMX 's and Chippy 's 2004 and 2009 revenues per employee in 2009 dollars.
2. Compare BMX 's change in productivity between 2004 and 2009 with that for Chippy. Will there be any problems that you foresee that may need immediate attention?
BMX
Company
Chippy
Company
Sales revenue
2004
$1,175,000
$1,850,000
2009
2,600,000
3,950,000
Number of
employees
2004
3,700
5,550
2009
4,500
8,750
Explanation / Answer
BMX Company Chippy Company Sales Revenue 1175000 1850000 Number of Employees 3700 5550 Revenue per employee 317.5675676 333.3333 2009 BMX Company Chippy Company Sales Revenue 2600000 3950000 Number of Employees 4500 8750 Revenue per employee 577.7777778 451.4286
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