Measure Cost per Input Unit Units produced 1,000 Labor 400 $12.50 Raw Material 2
ID: 399707 • Letter: M
Question
Measure Cost per Input Unit
Units produced 1,000
Labor 400 $12.50
Raw Material 21,000 $1.50
Energy $5,250 1
Capital $10,000 1
Lillian Fok is president of Lakefront Manufacturing, a producer of bicycle tires. Fok makes 1,000 tires per day with the following resources: 400 hours per day @ $12.50 per hour Labor Raw Material 21,000 pounds per day @ $1.50 per pound Energy: Capital: $5,250 per day $10,000 per day productvity per labor hoothesetes rslabor our roun your a) Labor productivity per labor hour for these tirese/labor hour (round your response to two decimal places).Explanation / Answer
Output = 1000 tires per day
Labor input = 400 hours per day
a) Labor productivity per labor hour for these tires = Output/labor input = 1000 tires / 400 hours = 2.50 tires per labor hour