The table below shows the data for the number of pair of shoes produced and the cost incurred by Fancy Trends Inc. for the year 2015.
$\begin{array} { | l | l | l | }
\hline \text { Pair of Shoes Produced } & & 150,000 \
\hline \text { Cost Incurred } & \text { Direct Labor Cost } & \$ 60,000 \
\hline & \text { Energy Cost } & \$ 5,800 \
\hline & \text { Raw Material Cost } & \$ 42,000 \
\hline
\end{array}$
Based on the given data, the productivity of Fancy Trends Inc. for the year 2015 is _____.
A) 1 pair/USD
B) 1.39 pairs/USD
C) 2 pairs/USD
D) 2.46 pairs/USD

Question

The table below shows the data for the number of pair of shoes produced and the cost incurred by Fancy Trends Inc. for the year 2015.
$\begin{array} { | l | l | l | } 
\hline \text { Pair of Shoes Produced } & & 150,000 \
\hline \text { Cost Incurred } & \text { Direct Labor Cost } & \$ 60,000 \
\hline & \text { Energy Cost } & \$ 5,800 \
\hline & \text { Raw Material Cost } & \$ 42,000 \
\hline
\end{array}$
Based on the given data, the productivity of Fancy Trends Inc. for the year 2015 is _____.
A) 1 pair/USD
B) 1.39 pairs/USD
C) 2 pairs/USD
D) 2.46 pairs/USD

Quizplus · Accepted Answer

Productivity is calculated as the ratio of output to input. Here, the output is 150,000 pairs of shoes, and the total cost (input) is the sum of direct labor cost, energy cost, and raw material cost, which equals $60,000 + $5,800 + $42,000 = $107,800. Therefore, productivity = 150,000 pairs / $107,800 = 1.39 pairs/USD.

The Table Below Shows the Data for the Number of Pair