Ajax Carpet Cleaning Promises to Clean 100 Square Feet of Carpet

question 7

Multiple Choice

Ajax Carpet Cleaning promises to clean 100 square feet of carpet for $15.00. Their work standard for such a job is $5.00 for labor and $2.00 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?

• A) 3.00
• B) 7.50
• C) 20.00
• D) 10.0
• E) 50.0

---

Definitions:

Statement of Cash Flows

A financial report that shows the changes in an entity's cash balance over a specific period, detailing sources and uses of cash.

Operating Activities

The portion of a company's business that relates to its core operations, involving the production, distribution, and sale of goods and services, impacting cash flow and profit.

Investing Activities

Financial actions related to acquiring or disposing of long-term assets and other investments not included in cash equivalents.

Open Purchase Orders

These are purchase orders issued by a business that have not yet been fulfilled or invoiced by the supplier.