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Natalie Attire makes fashionable garments. During a particular week, employees worked 360 hours to produce a...

Natalie Attire makes fashionable garments. During a particular week, employees worked 360 hours to produce a batch of 132 garments, of which 52 were “seconds” (meaning that they were flawed). Seconds are sold for $90 each at Attire’s Factory Outlet Store. The remaining 80 garments are sold to retail distribution at $200 each. What is the labor productivity of this manufacturing process?

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Answer #1

Given: 52 garments sold at $90, 80 garments sold at $200

Labor productivity can be calculated using below formula:

Labor Productivity = = = $57.44 per hour

hence, in terms of $/hour, Labor productivity = $57.44 per hour

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