Chapter 1: Q150Q (page 38)

Question: Sail master makes high-performance sails for competitive windsurfers. Below is information about the inputs and outputs for one model, the Windy 2000.
Calculate the productivity in sales revenue/labor expense.

Short Answer

Expert verified

Answer

The productivity is 3.69

Step by step solution

Understanding the question

The question has asked to measure productivity in sales revenue /labor hours. This means that total sales revenue and total wage expense of labor have to be calculated. Total material and total energy will not be used.

Calculating sales revenue

$Sales revenue = unsold×Priceofeachunitofsold = 1217 \times 1700 = $ 2068900$

Calculating total labor expense

$T o t a l l a b o u r e x p e n s e = T o t a l l a b o u r h o u r s \times W a g e r a t e = 46672 \times 12 = $ 560064$

Calculating productivity

$Productivity = \frac{Sales revenue}{Labour expense} = \frac{2068900}{560064} = 3.69$

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Question: Sail master makes high-performance sails for competitive windsurfers. Below is information about the inputs and outputs for one model, the Windy 2000.
Calculate the productivity in sales revenue/labor expense.

Short Answer

Step by step solution

Understanding the question

Calculating sales revenue

Calculating total labor expense

Calculating productivity

One App. One Place for Learning.

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Question: Sail master makes high-performance sails for competitive windsurfers. Below is information about the inputs and outputs for one model, the Windy 2000.Calculate the productivity in sales revenue/labor expense.

Short Answer

Step by step solution

Understanding the question

Calculating sales revenue

Calculating total labor expense

Calculating productivity

One App. One Place for Learning.

Most popular questions from this chapter

Recommended explanations on Business Studies Textbooks

Business Operations

Introduction to Business

Managers

Organizational Communication

Influences On Business

Strategic Analysis

Study anywhere. Anytime. Across all devices.

Question: Sail master makes high-performance sails for competitive windsurfers. Below is information about the inputs and outputs for one model, the Windy 2000.
Calculate the productivity in sales revenue/labor expense.