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 1,217 sales price each $1,700 total labor hours 46,672 wage rate $12/hour total materials $60,000 total energy $4,000 calculate: i. the productivity in sales revenue/labor expense ii. the total productivity.

Answer 1

Answer:

(A) The productivity in sales revenue/labour expense = 3.69

(B) Total productivity = 3.31

Explanation:

Sailmaster makes high performance sale for competitive windsurfers

The units sold is 1,217

The sales price is $1,700

The total labour hours is 46,672

The wave rate is $12

The total materials cost is $60,000

Total energy is $4,000

(A) The productivity in sales revenue/labour expense can be calculated as follows

= units sold×sale price/total labour×wage rate

= 1,217×1,700/46,672×12

= 2,068,900/560,064

= 3.69

(B) The total productivity can be calculated as follows

=1,217×1700/(46,672×12)+(60,000+4,000)

= 2,068,900/560,064+64,000

= 2,068,900/624,064

= 3.31

Hence the productivity in sales revenue/labour expense is 3.69 and the total productivity is 3.31