Sailmaster makes high-performance sails for competitive windsurfers. Below is information about the inputs and outputs for one model, the Windy 2000. Units sold 1,236 Sale price each $ 1,719 Total labor hours 46,574 Wage rate $ 11 / hour Total materials $ 60,550 Total energy $ 4,050 Calculate the productivity in sales revenue/labor expense.

Productivity = 4.147

Explanation:

Productivity measures the efficient use of resources, capital, land, materials, energy, or information in the production of products and services. A highly productive process achieves more with a given level of resources.

We are to calculate productivity as a. ratio of sales revenue to labour expense.

Sales revenue = units sold * unit price

Sales revenue = 1,236 * 1,719

Sales revenue = $2,124,684

Labour expense = total hours * hourly rate

Labour Expense = 46,574*11

Labour Expense = $512,314

So Productivity = Sales revenue / Labour expense

Productivity = 2,124,684 / 512,314

Productivity = 4.147