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Calculate the labor productivity for the following situation: A hair stylist serves 10 customers a day and uses $30.00 worth of materials to produce $810 in revenue over 9 hours.

User KLE
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Final answer:

Labor productivity is calculated by dividing the total revenue by the total hours worked, resulting in a labor productivity of $90 per hour for the hair stylist.

Step-by-step explanation:

To calculate the labor productivity in the given scenario, we need to determine the amount of goods or services produced by a hair stylist over a certain period of time in relation to the amount of labor required to produce them. To do this, we divide the total revenue generated by the total hours of labor. Labor productivity can be represented as output per hour.



The total revenue is given as $810, and the stylist works for 9 hours. Therefore, we calculate labor productivity as follows:



Labor Productivity = Total Revenue / Total Hours Worked

Labor Productivity = $810 / 9 hours = $90 per hour.



This shows that the hair stylist produces $90 worth of services for every hour worked. Note that the cost of materials used is not factored into the labor productivity calculation, as it pertains to material costs, not labor efficiency.

User Daniel Heilper
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