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Tpy6a [65]
3 years ago
10

Sailmaster makes high-performance sails for competitive windsurfers. Below is information about the inputs and outputs for one m

odel, the Windy 2000. (Please note that the second part of this question is different from other examples found online).
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
(I think that I have done this part correctly; part II is what I don't understand)
(1217 x 1700) / (46672 x 12) =
2068900 / 560064 = 3.69
II. the total productivity.
I understand that total productivity could be expressed in units sold, or dollars of sales; please show both.
Business
1 answer:
avanturin [10]3 years ago
3 0

Answer and Explanation:

The computation is shown below:

a. The productivity in terms of sales revenue / labor expense:

Sales revenue = Units sold × sales price

= 1,217 × $1,700

= $2,068,900

Labor expense = Total labor hours × wage rate

= 4,6672 × $12

= $560,064

Now sales revenue to labor expense is

= $2,068,900 ÷ $560,064

= 3.69

2. Total productivity

As we know that

Total productivity =Output ÷ (labor + material + energy)

= ($2,068,900) ÷ ($560,064 +  $60,000 + $4,000)

= $2,068,900 ÷ $624,064

= $3.315

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