Two types of cars (Deluxe and Limited) were produced by a car manufacturer last year. Quantities sold, price per unit, and labor hours are given below. QUANTITY $/UNIT Deluxe car 2,850 units sold $ 8,700 /car Limited car 6,350 units sold $ 10,200 /car Labor, Deluxe 21,750 hours $ 11 /hour Labor, Limited 29,555 hours $ 14 /hour
What is the labor productivity for each car?

The labor productivity  for Deluxe and Limited cars are as follows:

          Units/Hourdollars

Deluxe Car  0.13   103.64  

Limited Car  0.21   156.54  

Explanation:

It is noteworthy that labor productivity in terms of units/hour does not put into consideration  quality of product, selling prices and skill level of the manufacturing workers. It would extremely  difficult for supervisors to find  out the workers that are better in terms of unit/hour.

Find attached spreadsheet with detailed calculation and formulas used.

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