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To calculate your company's labor productivity, you would divide 80,000 by 1,500, which equals 53. This means that your company generates $53 per hour of work. You could also look at labor productivity in terms of individual employee contribution. In this case, instead of using hours as the input, you would use number of employees.
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You can calculate it by using the following formula: Cost per unit = Output / (Labor + Capital + Material) You measure output based on the units of whatever you produce. The rest of the inputs — labor, capital, and material — also depend on your organization. You might use hours worked for labor, cost of equipment for capital, and cost of ...
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