Question

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?

Answer 1

The answer is: their labor productivity is 4

Step-by-step 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