A company produces 400 bicycles every day.Each bicycle is worth $250.The inputs used to make those bicycles are labor,materials,and machine costs.The company pays their employees a total of $10,000 per day,the materials to make those bicycles cost $50 per bike,and the cost to operate the machines is $3000 per day.Based only on the data provided,what is this company's total productivity for one day?
A)3.03
B)0.33
C)0.77
D)1.31

Question

A company produces 400 bicycles every day.Each bicycle is worth $250.The inputs used to make those bicycles are labor,materials,and machine costs.The company pays their employees a total of $10,000 per day,the materials to make those bicycles cost $50 per bike,and the cost to operate the machines is $3000 per day.Based only on the data provided,what is this company's total productivity for one day?
A)​3.03
B)​0.33
C)​0.77
D)​1.31

Quizplus · Accepted Answer

Total productivity is calculated by dividing the total output value by the total input cost. The total output value is 400 bicycles * $250 = $100,000. The total input cost is $10,000 (labor) + ($50 * 400) (materials) + $3,000 (machines) = $10,000 + $20,000 + $3,000 = $33,000. Therefore, total productivity = $100,000 / $33,000 = 3.03.

A Company Produces 400 Bicycles Every Day