Question

XYZ Publisher can produce 200 books in a standard 8-hour day. It uses 5 employees. The average labor cost is $25/hour. A book requires $15 of raw materials.

If the books can be sold at a price of $30 each, what is the multifactor productivity?

A) 0.5 B) 1.0 C) 1.5 D) 2.0

Answer 1

C) 1.5

Step-by-step explanation:

multifactor productivity

= total revenue per day/total cost per day

= (30*200)/[(5*8*25)+(15*200)]

= 6000/4000

= 1.5

Therefore, The multifactor productivity is 1.5