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
Answer and Explanation:
The given statement is true as the real options would provide the managers the flexibility for deciding to invest or wait so that it would make a more computed decision
The real option that permits the input or output in the production process that could vary so it would be investment timing option as here the timing plays a very vital role
The given situation represent a real option to expand as the firm would pursue the extra expansion contracts
