Question

Sailmaster makes high-performance sails for competitive windsurfers. Below is information about the inputs and outputs for one model, the Windy 2000. Units sold 1,236 Sale price each $ 1,719 Total labor hours 46,574 Wage rate $ 11 /hour Total materials $ 60,550 Total energy $ 4,050 Calculate the productivity in sales revenue/labor expense.

Answer 1

Answer:

Productivity= 4.147

Explanation:

Productivity measures the efficient use of resources, capital, land, materials, energy, or information in the production of products and services. A highly productive process achieves more with a given level of resources.

We are to calculate productivity as a.ratio of sales revenue to labour expense.

Sales revenue= units sold* unit price

Sales revenue= 1,236* 1,719

Sales revenue= $2,124,684

Labour expense= total hours* hourly rate

Labour Expense= 46,574*11

Labour Expense= $512,314

So Productivity= Sales revenue/ Labour expense

Productivity= 2,124,684/ 512,314

Productivity= 4.147