Question

Acme Corporation received the data below for its Rocket Powered Flying Batwing Kit production line. Output Input 70,000 kits Production time: 925 labor hours Sales price: $5.50/kit Wages: $10.00/hour Raw materials: $40,000 Component parts: $125,300 What is the total productivity measure in dollars of output per dollar of input? Round your answer to two decimal places. a. 2.58 6. 249 C 3.57 d. 221 e 1.89

Answer 1

Answer: b.$2.49

Calculations:

Wages [925 x $10]	$9,250
Raw materials	$40,000
Component parts	$125,300
Total production costs	$174,550
÷ Output	70,000 kits
= Toal productivity measure in dollars of output per dollar of input	$2.49