(Answered) Question - productivityin early 20x1 united communications

Accounting

Question - Productivity

In early 20X1, United Communications, a U.S.-based international telephone communications company, purchased the controlling interest in Bucharest Telecom, Ltd. (BTL) in Romania. A key productivity measure monitored by United is the number of customer telephone lines per employee. Consider the following data for United:

	20X1 without BTL	20X1 with BTL	20X0
customer lines	15,054,000	19,994,000	14,615,000
employees	74,520	114,590	72,350
lines per employee	202	174	202

1. What are United's 20X0 productivity and 20X1 productivity without BTL?

2. What are BTL's 20X1 productivity and United's 20X1 productivity with BTL?

3. What difficulties do you foresee if United brings BTL's productivity in line?

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