What is the hourly compensation per worker for a company with a unit labor cost of 0.9 and an hourly output per worker of $32.50? round your answer if necessary to the nearest whole number

Given Information:

Unit labor cost = 0.9

Hourly output per worker = $32.50

Required Information:

Hourly compensation per worker = ?

Hourly compensation per worker = $36

Step-by-step explanation:

The unit labor cost is given by

Where W is the hourly compensation per worker, O is the hourly output per worker and U is the unit labor cost.

Re-arranging for the hourly compensation yields,

Now substitute the given values

Therefore, the hourly compensation per worker is $36.

Bonus:

Unit labor cost is the amount incurred with regard to labor expenses to produce one unit of a product. Calculating the unit labor cost helps in analyzing other aspects of the business such as product pricing, profit margin, sales etc.

$4

step-by-step explanation:

$30×5=$150

$150 minus $130=$20

$20÷5=$4.

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