Question

A company's financial data in last year are: $363508 sales, $74944 labor costs, $55978 material costs, and $9687 energy cost. What's the company productivity for labor and energy?

Answer 1

The company's labor productivity is approximately 4.85, and the energy productivity is approximately 37.51. They represent how many dollars of sales are generated per dollar of labor and energy, respectively.

Step-by-step explanation:

The student has asked about calculating the productivity for labor and energy based on the company's financial data from the last year. Productivity in this context refers to the output per unit of input, which in this case would be the sales (output) divided by the labor costs and energy costs (inputs).

To calculate the labor productivity, we use the formula:

• Sales / Labor Costs

Therefore, the labor productivity is:

• $363,508 / $74,944 ≈ 4.85

For energy productivity, the formula is:

• Sales / Energy Costs

Thus, the energy productivity is:

• $363,508 / $9,687 ≈ 37.51

These are dimensionless numbers indicating how many dollars of sales are generated per dollar of labor and per dollar of energy, respectively.