Answer:
2.5 units per hour
Explanation:
Given that,
Total output = 1,000 tires per day
Labor = 400 hours per day @ $12.50 per hour
Raw Material = 20,000 pounds per day @ $1.00 per pound
Energy = $5,000 per day
Capital = $10,000 per day
Labor productivity per labor hour:
= Total output ÷ Total labor hours
= 1,000 ÷ 400 hours per day
= 2.5 units per hour