A hamburger factory produces 40,000 hamburgers each week. The equipment used costs $5,000 andwill remain productive for 4 years. The labor cost per year is $9,500. Note: there are 52 weeks in a year.

Question

Business

Yusuf

2 May, 05:50

A hamburger factory produces 40,000 hamburgers each week. The equipment used costs $5,000 andwill remain productive for 4 years. The labor cost per year is $9,500. Note: there are 52 weeks in a year.

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Answers (1)

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Jamie Holloway · Answer 1

This question is incomplete. However, I found the prompt to be as follows;

"What is the productivity measure of "units of output per dollar of input" averaged over the four-year period? "

Explanation:

To solve this question, find productivity;

Productivity in this case is total hamburgers produced divided by the total labor cost plus total equipment cost.

Productivity = # of hamburgers * 52 weeks * 4 years / (total labor cost + equipment cost)

Productivity = 40,000 (52) (4) / {9,500 (4) + 5000}

= 193.5 hamburgers/dollar of input

Therefore, the factory would produce about 194 burgers per dollar of input.