Respuesta :
Given Information:
Unit labor cost = 0.9
Hourly output per worker = $32.50
Required Information:
Hourly compensation per worker = ?
Answer:
Hourly compensation per worker = $36
Step-by-step explanation:
The unit labor cost is given by
[tex]U = \frac{O}{W}[/tex]
Where W is the hourly compensation per worker, O is the hourly output per worker and U is the unit labor cost.
Re-arranging for the hourly compensation yields,
[tex]U = \frac{O}{W}\\\\W =\frac{O}{U}\\ \\[/tex]
Now substitute the given values
[tex]W =\frac{32.50}{0.9}\\\\W = 36.11\\\\W = \$ 36[/tex]
Therefore, the hourly compensation per worker is $36.
Bonus:
Unit labor cost is the amount incurred with regard to labor expenses to produce one unit of a product. Calculating the unit labor cost helps in analyzing other aspects of the business such as product pricing, profit margin, sales etc.
