Explain the problems associated with the labor productivity

Reference no: EM13321963

Two types of cars (Deluxe and Limited) were produced by a car manufacturer in 2008.

Quantities sold, price per unit, and labor hours follow. What is the labor productivity for each car? Explain the problems associated with the labor productivity.

QUANTITY $/unit

Deluxe car 4,000 units sold $8,00O/car

Limited car 6.000 units sold $9,50O/car

Labor, Deluxe 20,000 hours $12/hour

Labor, Limited 30,000 hours $14/hour

Reference no: EM13321963

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