Sailmaster makes high-performance sails for competitive windsurfers. Below is information about the inputs and outputs for one model, the Windy 2000. Units sold 1,214 Sale price each $ 1,697 Total labor hours 46,675 Wage rate $ 11 /hour Total materials $ 60,100 Total energy $ 4,110

Productivity in sales revenue/labor expense = 4.01

Explanation:

We know,

Productivity = Sales Revenue ÷ Labor Expense

Again, we know

Sales revenue = Total number of units sold × Sales price per unit

Given,

units sold = 1,214

Sales price per unit = $1,697

Putting the values in the formula,

Sales revenue = 1,214 × $1,697 = $2,060,158

Labor Expense = Total labor hours × Wage rate per hour

Given,

Total labor hours = 46,675

Wage rate per hour = $11

Putting the values in the formula,

Labor Expense = 46,675 hours × $11 = $513,425

Therefore,

Productivity = $2,060,158 ÷ $513,425

Productivity = 4.01

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