Measuring output per unit of input involves the following steps:
Identify the Outputs: Determine what constitutes the output for your business. This could be the number of products manufactured, services delivered, or sales generated. Identify the Inputs: Determine the resources used to produce these outputs. Common inputs include labor hours, raw materials, capital, and energy. Calculate the Ratio: Divide the total output by the total input to get the ratio. For example, if a factory produces 1000 units using 200 hours of labor, the output per unit of input would be 5 units per hour.