Two types of cars (Deluxe and Limited) were produced by a car manufacturer last year.

Quantities sold, price per unit, and labor hours follow. What is the labor productivity for each car? Explain the problem(s) associated with the labor productivity.

Quantity $/Unit Deluxe car 4,000 units sold $8,000/car Limited car 6,000 units sold $9,500/car Labor, Deluxe 20,000 hours $12/hour Labor, Limited 30,000 hours $14/hour

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