In a productivity calculation example, if 5,000 units are produced at a standard price of $30 per unit, what is the revenue generated?

Prepare for your Operations Management Exam with comprehensive flashcards and multiple-choice questions. Each question includes hints and explanations. Excel in your exam with guided insights!

To determine the revenue generated from the production of 5,000 units at a standard price of $30 per unit, you can use the revenue formula, which is simply the product of the number of units produced and the price per unit.

In this case, you multiply the number of units (5,000) by the price per unit ($30):

[

\text{Revenue} = \text{Number of Units} \times \text{Price per Unit}

]

[

\text{Revenue} = 5,000 \times 30 = 150,000

]

This calculation results in a total revenue of $150,000. Therefore, this represents the correct calculation for the revenue generated based on the provided information. Understanding this process is vital in operations management, as revenue calculations often inform production decisions, budgeting, and profitability assessments in various business operations.

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