Answer:
Productivity in sales revenue/labor expense = 4.01
Explanation:
We know,
Productivity = Sales Revenue ÷ Labor Expense
Again, we know
Sales revenue = Total number of units sold × Sales price per unit
Given,
units sold = 1,214
Sales price per unit = $1,697
Putting the values in the formula,
Sales revenue = 1,214 × $1,697 = $2,060,158
Labor Expense = Total labor hours × Wage rate per hour
Given,
Total labor hours = 46,675
Wage rate per hour = $11
Putting the values in the formula,
Labor Expense = 46,675 hours × $11 = $513,425
Therefore,
Productivity = $2,060,158 ÷ $513,425
Productivity = 4.01
