Homework SourseLive Trap Corporation received the data below for its rodent
Live Trap Corporation received the data below for its rodent cage production unit.
Find the total productivity in Units Sold and Dollars of Sales per Dollar Input. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
| OUTPUT | INPUT | |||
| 50,300 cages | Production time | 650 | labor hours | |
| Sales price: $2.90 per unit | Wages | $ | 6.90 | per hour |
| Raw materials (total cost) | $ | 30,000 | ||
| Component parts (total cost) | $ | 15,350 | ||
Solution
Total output = 50300 cages
Dollars of sales = output x sales price per unit = 50300 x $2.90 = $145870
Labor input = production time x wages per hour = 650 hours x $6.90 = $4485
Raw materials input = $30000
Component parts input = $15350
Total input = labor input + raw materials input + component parts input = $4485 + $30000 + $15350 = $49835
Productivity in units sold per dollar input = Total output / Total input = 50300 units / $49835 = 1.01 units per dollar
Productivity in dollar of sales per dollar input = dollar of sales / Total input = $145870 / $49835 = $2.93 per dollar
