Snacknow, a food service firm, is calculating its monthly productivity report. From the following raw data calculate the labor productivity.

Labor rate $10

Units produced 10,000

Labor hours 1,000

Cost of materials $2000

Cost of energy $500

(A) 0.220

(B) 1.000

(C) 0.800

(D) 0.476

Labor productivity = Total output / Total Input

Labor rate = $10. Labor hours = 1,000

So total labour input = 1,000*10 = 10,000.

Materials and energy cost input = 2000+500

⇒ total input = 10,000 + 2000+500 = 12500

Total output (units produced) = 10,000

Labor productivity = 10,000/12500 = 0.80