Ajax Carpet Cleaning promises to clean 100 square feet of carpet for $20.00. Their work standard for such a job is $5.00 for labor and $2.50 for cleaning supplies. Since they use the customer's electricity, there are no other inputs in to the cleaning process. What is their labor productivity?

Question

Catalina Hensley

Business

21 August, 13:44

Ajax Carpet Cleaning promises to clean 100 square feet of carpet for $20.00. Their work standard for such a job is $5.00 for labor and $2.50 for cleaning supplies. Since they use the customer's electricity, there are no other inputs in to the cleaning process. What is their labor productivity?

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Answers (1)

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Colton · Answer 1

The answer is: their labor productivity is 4

Explanation:

Labor productivity is how much money an employee produces for his/her employer (in this case Ajax Carpet Cleaning) compared to what the employee earns for doing his/her job.

The formula for calculating labor productivity is:

labor productivity = Sales / Labor = $20 / $5 = 4