Question

Lillian Fok is president of Lakefront​ Manufacturing, a producer of bicycle tires. Fok makes 1 comma 000 tires per day with the following​ resources: ​Labor: 400 hours per day ​@​ $12.50 per hour Raw​ Material: 20 comma 000 pounds per day​ @ ​$1.00 per pound ​Energy: ​$5 comma 000 per day ​Capital: ​$10 comma 000 per day Labor productivity per labor hour for these tires​ = nothing ​tires/labor hour ​(round your response to two decimal​ places).

Answer 1

Answer:

2.5 units per hour

Explanation:

Given that,

Total output = 1,000 tires per day

Labor = 400 hours per day ​@​ $12.50 per hour

Raw​ Material = 20,000 pounds per day​ @ ​$1.00 per pound

Energy = ​$5,000 per day

Capital = ​$10,000 per day

Labor productivity per labor hour:

= Total output ÷ Total labor hours

= 1,000 ÷ 400 hours per day

= 2.5 units per hour