Question

A law firm has a staff of four employees working 8 hours a day for a total payroll cost of $640. in addition, the law firm has overhead expenses of $800 per day. due to a recent software change, the same employees are able to process 14 case files a day rather than 8 using the old software system. what is the multifactor productivity of this revised operation?

Answer 1

Multifactor productivity is a unit of measurement that being calculated by comparing the net value of output with the net value of the input.

Multifactor productivity:
14 / ($640 + $800)

= 14 / $ 1,440

= .0097 case files per dollar