Answer:
The productivity in sales revenue/labor expense: 3.49
Explanation:
Total sales (revenue) = Sale price per unit x Units sold = $1,710 x 1,231 = $2,105,010
Total labor expense = Total labor hours x Wage rate = 46,453 x $13 = $603,889
The productivity in sales revenue/labor expense is calculated by ussing following formula:
The productivity in sales revenue/labor expense = Total sales/Total labor expense = $2,105,010/$603,889 = 3.49
That means for every dollar lmaster puts into labor, the company potentially makes $3.49 in sales revenue
