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