Live Trap Corporation received the data below for its rodent cage production unit.

OUTPUT INPUT
50,500 cages Production time 630 labor hours Sales price: $3.40 per unit Wages $7.40 per hour
Raw materials (total cost) $31,000
Component parts (total cost) $15,450

Find the total productivity in Units Sold and Dollars of Sales per Dollar Input. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Explanation:

Total output = output cages* sales price  = 50500 cages * $3.40 per unit =   =  $ 171,700    

Total Input:    

Wages = 630 labor hours * $7.40 = $4,662  

Raw materials = $ 31,000  

Components = $ 15,450  

Total input $51,112  [Add up wages, components and raw materials]

1) Total productivity in units sold = Output in units / Input in dollars

=50500 cages/$51,112    

=0.99 per dollar input  

2) Total productivity in dollars= Output in dollars / Input  

=$171,700/51,112 = $ 3.36 per unit input  

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