Question

Live Trap Corporation received the data below for its rodent cage production unit. OUTPUT INPUT 49,200 cages Production time 630 labor hours Sales price: $3.40 per unit Wages $ 7.40 per hour Raw materials (total cost) $ 31,000 Component parts (total cost) $ 15,355.

Required:
Find the total productivity in Units Sold and Dollars of Sales per Dollar Input.

Answer 1

Answer:1) Total productivity in units sold = 0.96 units sold per dollar input

2) Total productivity in dollars== $ 3.28 dollars in sales per dollar input

Step-by-step explanation:

Total output = output cages x sales price = 49,200 cages x $3.40 per unit = = $ 167,280

Total Input =wages+components+ raw materials

Wages = 630 labor hours x $7.40 = $4,662

Raw materials = $ 31,000

Component parts = $ 15,355

Total input =$51,017

1) Total productivity in units sold = Output in units / Input in dollars

=49,200 cages/$51,017 =0.96 units sold per dollar input

2) Total productivity in dollars= Output in dollars / Input =$ 167,280/$51,017 = $ 3.28 dollars in sales per dollar input