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A process has an output per day of 7,040 units. the inputs to produce this are labor $1000, materials $520; and overhead $2000. what is the productivity?
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A process has an output per day of 7,040 units. the inputs to produce this are labor $1000, materials $520; and overhead $2000. what is the productivity?

User Charsi
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1 Answer

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The multifactor productivity can be calculated using the the units produced and the total costs.
Units = 7040
Total costs = 1000 + 520 + 2000
Total costs = $3,520

Multifactor productivity = 7,040 / 3,520
Multifactor productivity = 2 units per dollar
User Khrm
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