Question 11 (of 2 value 2.00 points Two types of cars (Deluxe and Limited) were

ID: 358684 • Letter: Q

Question

Question 11 (of 2 value 2.00 points Two types of cars (Deluxe and Limited) were produced by a car manufacturer last year. Quantities sold, price per unit, and labor hours are given below. QUANTITY UNIT 2,600 units sold $7,600/car 5.800 units sold S9,100/car Deluxe car Limited car Labor, Deluxe 19,000 hours Labor, Limited 29,000 hours S 13/hour 15/hour What is the labor productivity for each car? Provide two sets of figures: units per labor hour, and dollar of output per dolar of labor expense. (Round your answers to 2 decimal places.) provide two Labor Produ units hour dollars Deluxe car Limited car Raferencors Worksheet Difficuity. 3 Challenge Learning Objectlive: 02-05 Evaluate productivity in operations and supply chain management

Explanation / Answer

Labour productivity in terms of Quantities sold per labour hour

= Quantity sold/ Labour hour

Therefore ,

Labour productivity for Deluxe car

= 2800 / 19000

=0.147 ( 0.15 rounded to 2 decimal places )

Labour productivity for Limited Car

= 5800 / 29000

= 0.20

Labour productivity in terms of Dollar output per Dollar labour expenses

= ( Units sold x $/ unit ) / ( Labour hours x $/ hour )

Therefore productivity of Deluxe car

= ( 2800 x 7600 ) / ( 19000 x 13 )

= 86.15

Productivity of Limited Car

= ( 5800 x 9100 ) / ( 29000 x 15 )

= 121.33

Labour productivity

Units/ hour

Dollar

Deluxe car

0.15

86.15

Limited Car

0.20

121.33