Question

Live trap corporation received the data below for its rodent cage production unit. Output input 50,025 cages production time 652 labor hours sales price: $3.60 per unit wages $ 7.60 per hour raw materials (total cost) $ 31,550 component parts (total cost) $ 15,900 find the total productivity in units sold and dollars of sales per dollar input.

Answer 1

Total productivity could be expressed two ways here based on how you express output: in units sold, or dollars of sales.

Units sold:

50,025/((652 × $7.60) + $31,550 + $15,900) = 0.95 units sold per dollar input

Dollars of sales:

(50,025 × 3.60)/((652 × $7.60) + $31,550 + $15,900) = 3.44 dollars in sales per dollar input