Question

A hamburger factory produces 2,850 hamburgers each week. Assume there are 45 working weeks per year. The equipment used for making hamburgers costs $68,682 and will remain productive for 5 years. The factory has 35 employees and the average monthly salary is $4,372 per person. The average utility cost for the factory is $5,963 per month. What is the factory's total productivity?

Answer 1

0.07 hamburgers per dollar

Step-by-step explanation:

The computation of the factory total productivity is shown below:

As we know that

Productivity is

= Output ÷ total cost

where,

output is

= 2,850 hamburgers × 45 working weeks per year

= 128,250

And, the total cost is

= equipment + utility + labor

The equipment is

= $68,682 ÷ 5 years

= $13,736.40

The utility is

= $5,963 × 12 months

= $71,556

And, the labor is

= $4,372 × 35 employees × 12 months

= $1,836,240

Now total cost is

= $13,736.40 + $71,556 + $1,836,240

= $1,921,532.40

So, the factory total productivity is

= 128,250 ÷ $1,921,532.40

= 0.07 hamburgers per dollar