Question

Two types of cars (Deluxe and Limited) were produced by a car manufacturer last year. Quantities sold, price per unit, and labor hours are given below. QUANTITY $/UNIT Deluxe car 2,600 units sold $ 7,600 /car Limited car 5,800 units sold $ 9,100 /car Labor, Deluxe 19,000 hours $ 13 /hour Labor, Limited 29,000 hours $ 15 /hour What is the labor productivity for each car

Answer 1

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Step-by-step explanation:

The formula for labor productivity = Monetary value of goods and services produced / Total number of hours worked.

• Deluxe car = (2,600 × $7,600) / 19,000 hours × $13

= $80