Question

Live Trap Corporation received the data below for its rodent cage production unit. OUTPUT INPUT 50,200 cages Production time 625 labor hours Sales price: $3.60 per unit Wages $ 7.60 per hour Raw materials (total cost) $ 31,500 Component parts (total cost) $ 15,645
Find the total productivity. (Round your answers to 2 decimal places.)
Total Productivity
a.Units sold per dollar input
b.Sales $ per dollar input

Answer 1

Answer:

• a. 0.97 units per dollar input.
• b. $3.48 per dollar input.

Explanation:

a. Units sold per dollar input:

= Total units / (Total wage + Total Raw Material cost + Total Component cost)

= 50,200 / ( (7.60 * 625 hours) + 31,500 + 15,645)

= 50,200 / 51,895

= 0.97 units sold per dollar input

b. Sales per dollar input:

= Total sales / (Total wage + Total Raw Material cost + Total Component cost)

= (50,200 * 3.60 per unit selling price) / 51,895

= 180,720 / 51,895

= $3.48 per dollar input