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Problem 1.16 Question Help Susan Williams runs a small Flagstaff job shop where

ID: 395471 • Letter: P

Question

Problem 1.16 Question Help Susan Williams runs a small Flagstaff job shop where garments are made. The job shop employs eight workers. Each worker is paid $10 per hour. During the first week of March, each worker worked 48 hours Together, they produced a batch of 156 garments. Of these garments, 56 were 'seconds' (meaning that they were flawed). The seconds were sold for $90 each at a factory outlet store. The remaining 100 garments were sold to retail outlets at a price of $210 per garment. What was the labor productivity. in dollars per labor-hour, at this job shop during the first week of March? Labor productivitydolarsabor hour (round your respanse to two decimal places).

Explanation / Answer

Number of garments = 156

Total Revenue from 100 proper garments = 100*210

= $21000

Total Revenue from 56 Flawed garments = 56*90

= $5040

Total Revenue = 21000+5040

= 26040

Total Number of hours worked by one labor = 48

Total Number of hours worked by eight labors = 48*8

= 384

Labor productivity per labor hour = 26040/384

= $67.8125

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