A carpenter makes and sells a custom wooden chest armoire for $7,000.It took him 20 hours and the materials cost $2,000.The carpenter values his time as $100 per hour.What is the firm's productivity?
A) 0.57
B) 1.0
C) 1.75
D) 3.5

Question

Quizplus · Accepted Answer

To calculate productivity, we need to divide the total output (in this case, the value of the wooden armoire) by the total input (in this case, the time and material costs). 
Total input = 20 hours + $2000 materials = $4000 
Total output = $7000 
Productivity = Total output / Total input 
Productivity = $7000 / $4000 
Productivity = 1.75
Therefore, the firm's productivity is 1.75. The best choice is C.

A Carpenter Makes and Sells a Custom Wooden Chest Armoire