Question

The table belows shows some performanc metrics for 4 part-time employees working at a production plant. Based on the numbers provided answer the four questions under the table. Round your final answers to 2 decimal places

Performance Data Jim Mark Terri Karen

Units Produced 750 725 525 550

Material Cost per Unit $95 $85 $120 $135

Avg Sales Value of a Unit $300 $275 $450 $425

Hours Worked 25 20 18 18

Hourly Wage $12.25 $12 $12.50 $13.00

1. What is each employee's hourly output rate (in units)?

2. What is each employee's hourly output rate (in dollars)?

3. How much money does each employee make for the company for each dollar they spend on material?

4. How much money does each employee make for the company for each dollar they are paid?

Answer 1

1. Employee's hourly output rate = Units Produced/ Hours Worked  

Jim = 750/ 25 = 30 units/ hour

Mark = 725/20 =36.25 units/ hour

Terri = 525/18 = 29.17 units/ hour

Karen = 550/18 =30.55 units/ hour

2. Employee's hourly output rate (In dollars) = Employee's hourly output rate(In hours) * Avg Sales Value of a Unit

Jim = 30*300 = $ 9000/ hour

Mark = 36.25*275 = $ 9968.75/ hour

Terri = 29.166*450 = $ 13124.7/ hour

Karen =30.55*425 = $ 12983.75/ hour

3. Money made for the company for every dollar spent on material= Avg sales value of a unit/ Material Cost per Unit

Jim = 300/95 = 3.16

Mark = 275/85 = 3.24

Terri = 450/120 = 3.75

Karen = 425/135 = 3.15

4. Money does for the company for each dollar employee is paid = Employee's hourly output rate (In dollars)/ Hourly wage

Jim = 9000/12.25= 734.69

Mark = 9968.75/12= 830.73

Terri = 13124.7/12.5= 1049.98

Karen = 12983.75/13 = 998.75