Question

Live Trap Corporation received the data below for its rodent cage production unit. OUTPUTINPUT 50,000 cagesProduction time 620labor hours Sales price: $3.50 per unitWages$7.50per hour Raw materials (total cost)$30,000 Component parts (total cost)$15,350 Find the total productivity in Units Sold and Dollars of Sales per Dollar Input. (Round your answers to 2 decimal places.) Total Productivity Units sold1.00 correct per dollar input Sales (dollars)$ 3.50 correct per dollar input

Answer 1

Answer:

Please see explanations below

Explanation:

Total productivity : Units sold

50,000 / [(620 × $7.5) + $30,000 + $15,530]

= 50,000 / [(4,650 + $45,530)]

= 50,000 / 50,180

= 1.0 unit sold per dollar input

Total productivity : Dollars of sales

(50,000 × $3.5) / [(620 × $7.5) + $30,000 + $15,530

= $175,000 / [($4,650) + $45,530

= $175,000 / $50,180

= 3.50 dollars in sales per dollar input