STRATEGY AND SUSTAINABILITY chapter 2 15 Sailmaster makes hi

STRATEGY AND SUSTAINABILITY chapter 2 15. Sailmaster makes high-performance sails for competitive windsurfers. Below is nformation about the inputs and outputs for one model, the Windy 2000. Calculate the productivity in sales revenue/labor expense. Units sold Sale price each Total labor hours Wage rate Total materials Total energy 1,217 $1,700 46,672 $12/hour $60,000 $4,000

Solution

Sales Revenue = units sold x sales price each unit

= 1217 x $1700

= $2068900

Labor expense = Total labor hour x wage rate

= 46672 hours x $12

= $560064

Productivity = sales Revenue / labor expense

= $2068900 / $560064

= $3.69 per dollar of labor expense