A hamburger factory produces 70,000 hamburgers each week. The equipment used costs $13,000 and will remain productive for four years. The labor cost per year is $13,000. What is the productivity measure of "units of output per dollar of input" averaged over the four-year period?

224 units of output per dollar of input

Explanation:

The computation is shown below:

Productivity measures = (Total units produced) : (Total labor cost + Total equipment cost)

where,

Total units produced is

= 70,000 * 52 weeks in a year * 4 years

= $14,560,000

Total units produced

= $13,000 * 4 years

= $52,000

And, the cost of equipment is $13,000

So, the productivity measures is

= ($14,560,000) : ($52,000 + $13,000)

= 224 units of output per dollar of input