Smiley Company Has the Following Results If Productivity Is Measured Using the Number of Rolls of film

question 95

Multiple Choice

Smiley Company has the following results:
$\begin{array}{ll}\text { Rolls of film processed } & 350,000 \\\text { Sales revenue } & \$ 1,200,000 \\\text { Direct labor hours worked } & 5,500 \\\text { Direct labor cost } & \$ 47,000\end{array}$
If productivity is measured using the number of rolls of film processed per direct labor hour,what is the productivity of Smiley Company?

• A) $3.43 per roll
• B) $260.87 per direct labor hour
• C) 2,553% of direct labor cost
• D) 63.64 rolls per direct labor hour

---

Definitions:

Adverse Selection

A situation where sellers have information that buyers do not, or vice versa, often resulting in a market failure.

Utility Function

Represents a mathematical model in economics which shows preferences over a set of goods and services, depicting satisfaction levels of consumers.

Probability

The measure of the likelihood that an event will occur, often expressed as a number between 0 and 1.

Utility Function

A mathematical representation of how consumer preferences over a set of goods and services translate into choices given their budget constraint.