Question

J & C Chemicals in Tacoma, WA, makes water purification crystals for swimming pools. The major inputs used in the production process and the amount of output for each of the last two years are listed below:

Year	2009	2010
Output Crystal (dollars/pound) Crystal (pounds)	$12 (per pound) 100,000 pounds	$16 ( per pound) 150,000 pounds
Inputs Labor (hours) Labor total cost (dollars) Energy (kws) Energy total cost (dollars) Raw materials (pounds) Raw material total cost (dollars)	20,000 $180,000 350,000 $5,000 120,000 $30,000	28,000 $350,000 400,000 $6,000 185,000 $40,000

What was the partial-factor productivity of labor in dollars per hour in 2010?

Answer 1

Partial productivity of dollars per hour = quantity in pounds x cost per pound / labour hours

=16x150000 / 28000

= 85.7142 dollars per labour hour.