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
