Answer:
PRESENT= $5.21
COMPANY – A = $6.72
COMPANY – B= $6.64
Explanation:
Calculation for the higher productivity in terms of revenue per dollar of input
PRESENT
Average time =59 minutes
Cost=59 minutes x$1.30 per minute
Cost = $76.7
Productivity (per $input)=$400/$76.7
Productivity (per $input)= $5.21
COMPANY – A
Average time= (59 minutes-16 minutes)
Average time=43 minutes
Cost= 43 minutes x $1.30 per minute + $3.60
Cost=$55. 9+$3.60
= $59.50
Productivity (per $input)=$400/$59.50
Productivity (per $input) = $6.72
COMPANY – B
Average time= (59 minutes - 17 minutes)
Average time=42 minutes
Cost= 42 minutes x $1.30 per minute + $5.60
Cost=$54. 6+$5.60
= $60.20
Productivity (per $input)=$400/$60.20
Productivity (per $input) = $6.64
Summary
PRESENT:Productivity (per $input)= $5.21
COMPANY – A:Productivity (per $input) = $6.72
COMPANY – B:Productivity (per $input) = $6.64
Therefore COMPANY – A with the amount of $6.72 would have the higher productivity in terms of revenue per dollar of input because it has the highest amount.
