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Question: Live Trap Corporation received the data below for its rodent cage production unit. Find the total productivity.

Short Answer

Expert verified

Answer

The productivity is 1 unit or 3.5 dollars per dollar input

Step by step solution

01

Understanding the question.

The question has asked to find the total productivity, but it does not specify in what units. There are two ways in which total productivity can be measured. One is in unit sold per dollar input, and the other is in sales per dollar.

02

Calculating productivity in units sold in per dollar input.

Productivity =Outputunits[(Productiontime×wages)+rawmaterial+componentparts)]=50000620×7.50+30000+15350=500004650+30000+15350=5000050000=1 unit sold per dollar input

Productivity =Outputunits[(Productiontime×wages)+rawmaterial+componentparts)]=50000×3.5620×7.50+30000+15350=1750004650+30000+15350=17500050000=3.5dollars in sale per dollar input

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