Final answer:
The value added per employee formula is completed by dividing the product of number of products sold and price per unit by the total number of employees to determine their contribution in terms of revenue.
Step-by-step explanation:
The complete value added per employee formula is: Number of products sold x price per unit divided by the total number of employees. This calculation helps businesses understand the contribution each employee makes to the production of goods or services in terms of revenue generated.
Considering workers receive $10 per hour, and assuming that multiplying the 'Workers' row by $10 and eliminating the blanks provides us the cost of producing different levels of output, it is clear that this refers to the calculation of labor costs. The marginal product of a worker is particularly relevant here when discussing value addition because it shows how much extra output the company gains by hiring one more employee.
When adding a third lumberjack, for example, his or her marginal product would be the extra trees he or she can contribute on a typical day, which could increase due to activities such as oiling the saw's teeth to keep it running smoothly. This concept extends to any additional worker in a factory, office, or other settings.