Question

Live Trap Corporation received the data below for its rodent cage production unit. OUTPUT INPUT 49,200 cages Production time 630 labor hours Sales price: $3.40 per unit Wages $ 7.40 per hour Raw materials (total cost) $ 31,000 Component parts (total cost) $ 15,355.

Required:
Find the total productivity in Units Sold and Dollars of Sales per Dollar Input.

Answer 1

Answer:1) Total productivity in units sold = 0.96 units sold per dollar input

2) Total productivity in dollars== $ 3.28 dollars in sales per dollar input

Explanation:

Total output = output cages x  sales price  = 49,200 cages x  $3.40 per unit =   =  $ 167,280  

Total Input =wages+components+ raw materials

Wages = 630 labor hours x $7.40 = $4,662  

                                 Raw materials = $ 31,000  

                          Component parts  = $ 15,355  

                                          Total input =$51,017

1) Total productivity in units sold = Output in units / Input in dollars

=49,200 cages/$51,017   =0.96 units sold per dollar input

2) Total productivity in dollars= Output in dollars / Input   =$ 167,280/$51,017  = $ 3.28 dollars in sales per dollar input