Question

Live Trap Corporation received the data below for its rodent cage production unit.

OUTPUT INPUT
49,000 cages Production time 644 labor hours
Sales price: $3.90 per unit Wages $7.90 per hour
Raw materials (total cost) $31,500
Component parts (total cost) $15,250

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

Answer 1

Total productivity in Units Sold per Dollar Input: 0.95 units;

The total productivity in Dollars of Sales per Dollar Input: $3.69.

Step-by-step explanation:

* Total productivity in Units Sold per Dollar Input = Units sold / Total production cost = Units sold / ( Wages + Raw material + Component parts ) = 49,000 / ( Production time * wages per hour + raw material + component parts) = 49,000 / ( 644 * 7.9 + 31,500 + 15,250 ) = 0.95 units;

* The total productivity in Dollars of Sales per Dollar Input = Sales revenue / Total production cost = (Units sold * Sell price per unit )/ ( Production time * wages per hour + raw material + component parts) = (3.9 * 49,000) / ( 644 * 7.9 + 31,500 + 15,250 ) = $3.69.