Problem 2-16 Live Trap Corporation received the data below for its rodent cage p

Question

Problem 2-16 Live Trap Corporation received the data below for its rodent cage production unit. OUTPUT 50,050 cages Sales price: $2.90 per unit INPUT 635 labor hours Production time Wages Raw materials (total cost) Component parts (total cost) S 6.90 per hour $30,000 $ 15,350 Find the total productivity in Units Sold and Dollars of Sales per Dollar Input. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Total Productivity per dollar input per dollar input Units sold Sales (dollars)

Explanation / Answer

Total output = 50050 cages

Dollars of sales = output x sales price per unit = 50050 x $2.90 = $145145

Labor input = production time x wages per hour = 635 x $6.90 = $4381.5

Raw materials input = $30000

Component parts input = $15350

Total input = labor input + raw materials input + component parts input

= $4381.5 + $30000 + $15350

= $49731.5

Productivity in units sold per dollar input = Total output / Total input = 50050 cages / $49731.5 = 1.01 cages per dollar

Productivity in dollar of sales per dollar input = Dollar of sales / Total input = $145145 / $49731.5 = $2.92 per dollar

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