Question

a company produces 693 units of output per hour using 17 workers, who are paid $9 per hour. finished units sell for $83 each. what is the productivity of labor in dollars per worker ($/

Answer 1

$3,384 per hour

Step-by-step explanation:

To calculate the productivity of labor in dollars per worker, we need to divide the total revenue from sales by the total number of worker hours.

Step 1: Calculate the total revenue from sales

Revenue = Price per unit * Number of units sold

Revenue = $83 per unit * 693 unit

Revenue = $57,529

Step 2: Calculate the total number of worker hours

Number of worker hours = Number of workers * Hours worked per worker

Number of worker hours = 17 workers * 1 hour per worker

Number of worker hours = 17 hours

Step 3: Calculate the productivity of labor in dollars per worker

Productivity of labor = Revenue / Number of worker hours

Productivity of labor = $57,529 / 17 hours

Productivity of labor = $3,384 per hour

Therefore, the productivity of labor in dollars per worker is $3,384 per hour.