Question

Questions 1 to 5 relate to the following information: After running (M&M) for 1 year, Medro & Mariana decided to add new technology and train their workers to improve their performance. Under the NEW system: . (M&M) will be serving 2 kinds of sandwitches: triangle (T-sandwich) and square (S-sandwich) . Each T-sandwich will sell for 4 KD/sandwich & each S-sandwich for 3 KD/sandwich. . They expect to sell 90 T-sandwiches/day and 70 S-sandwiches/day. . They will have 7 workers. Each worker will be paid 5 KD/hr. They will work 9 hrs/day, 6 days/week, and 4 weeks/month . Mero & Mariana expect their overhead (O.H.) to be 70 KD/day. . The material cost for the (T) sandwich is 1.200 KD/sandwich . The material cost for the (S) sandwich is 1.100 KD/sandwich. What is the labor productivity (KD/hr)

Answer 1

The labor productivity is 25 KD/hour.

Step-by-step explanation:

The labor productivity can be calculated by dividing the total labor cost by the total number of hours worked. In this case, there are 7 workers who are paid 5 KD per hour, and they work for 9 hours per day, 6 days per week, and 4 weeks per month. So the total labor cost per month is 7 x 5 KD x 9 hours/day x 6 days/week x 4 weeks/month = 7 x 5 KD x 54 hours/week x 4 weeks/month = 7 x 5 KD x 216 hours/month = 37,800 KD. The total number of hours worked per month is 7 workers x 9 hours/day x 6 days/week x 4 weeks/month = 7 x 54 hours/week x 4 weeks/month = 7 x 216 hours/month = 1,512 hours. Therefore, the labor productivity is 37,800 KD / 1,512 hours = 25 KD/hour.