Question

Hokey​ Min's Kleen Karpet cleaned 75 rugs in​ October, consuming the following​ resources:

​Labor: 550 hours at ​$17 per hour
​Solvent: 120 gallons at ​$8 per gallon
Machine​ Rental: 22 days at ​$50 per day

​(a) Labor productivity per dollar​ = ____ ​rugs/dollar ​(round your response to four decimal​ places).
(b) Multifactor productivity​ =_____rugs/dollar ​(round your response to four decimal​ places).

Answer 1

(a) 0.0080 Rugs/U$S

(b) 0.0066 Rugs/U$S

Step-by-step explanation:

a) The labor productivity per dollar is :

(Total products/ services in a a period) /(total of U$S spent in labor to do so)

Total products = 75 Rugs

USS spent in labor = 500 hours*17$/hr= 9350 U$S

Then Labor Productivity = 75 rugs/ 9350 U$S= 0.0080 Rugs/ U$S

b) The Multifactor productivity is :

(Total products/ services in a a period) /(total of U$S spent in resources to do so)

*Total products = 75 Rugs

*USS spent in resources = 500 hours*17$/hr+120 gal * 8 U$S/ gal+22 U$S/day*50 days= 9350 U$S+960 U$S+1100 U$S = 11.410 U$S

Then multifactor Productivity = 75 rugs/ 11410 U$S= 0.0066 Rugs/ U$S