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Question related to Labor productivity
Two types of cars (Deluxe and Limited) were produced by a car maunfacturer in 1997. Quantities sold, price per unit, and labor hours follow. What is the productivity for each car? Explain the problem (s) with labor productivity.
Deluxe-4000 units sold-$8,000/car
Limited-6,000 units sold- $9,500/car
Labor (deluxe)-20,000 hours-$12/hour
Labor (Limited)-30,000 hours-$14/hour
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