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Two types of cars (Deluxe and Limited) were produced by a car manufacturer last

ID: 387202 • Letter: T

Question

Two types of cars (Deluxe and Limited) were produced by a car manufacturer last year. Quantities sold, price per unit, and labor hours follow.

What is the labor productivity for each car? Provide two sets of figures: units per labor hour, and dollar of output per dollar of labor expense. (Round your answers to 2 decimal places.)

Labor Productivity

Two types of cars (Deluxe and Limited) were produced by a car manufacturer last year. Quantities sold, price per unit, and labor hours follow.

QUANTITY $/UNIT      Deluxe car 2,600 units sold $ 7,600 /car   Limited car 5,800 units sold $ 9,100 /car   Labor, Deluxe 19,000 hours $ 13 /hour   Labor, Limited 29,000 hours $ 15 /hour

What is the labor productivity for each car? Provide two sets of figures: units per labor hour, and dollar of output per dollar of labor expense. (Round your answers to 2 decimal places.)

Explanation / Answer

For Deluxe car

For limited car

Labor productivity for deluxe car

Labor productivity for limited car