Question

Live Trap Corporation received the following data for its rodent cage production unit. OUTPUT INPUT 50,025 cages Production time 652 labor hours Sales price: $3.60 per unit Wages $ 7.60 per hour Raw materials (total cost) $ 31,550 Component parts (total cost) $ 15,900 Find the total productivity in Units Sold and Dollars of Sales per Dollar Input. (Round your answers to 2 decimal places

Answer 1

1. 0.95 per dollar input

2. $3.44 per unit input.

Step-by-step explanation:

1. Total output (sales revenue )

= Output cages × sales price per unit

= 50,025 cages × $3.60 per unit

= $180,090

Computation of total input

Wages(652 × 7.6). $4,955.2

Component parts $15,900

Raw materials $31,550

Total input. $52,405.2

Therefore, total productivity in units sold

= Output in units / input in dollars

= 50,025 cages / $52,405.2

= 0.95 per dollar input

2. Total productivity in dollars

= Output in dollars / input

= $180,090 / $52,405.2

= $3.44 per unit input