Question

Hokey​ Min's Kleen Karpet cleaned 85 rugs in​ October, consuming the following​ resources: ​Labor: 520 hours at ​$17 per hour ​Solvent: 100 gallons at ​$5 per gallon Machine​ Rental: 22 days at ​$60 per daya) Labor productivity per dollar​ = ---- ​rugs/dollar ​

b) Multifactor productivity​ = ----- ​rugs/dollar ​

Answer 1

(a) Labor productivity is 0.0096 rugs/dollar

(b) Multifactor productivity is 0.244 rugs/dollar

Step-by-step explanation:

(a) Labor productivity = total output/total labor input = 85 rugs/($17×520) = 0.0096 rugs/dollar

(b) Solvent productivity = 85 rugs/($5×100) = 0.17 rugs/dollar

Machine rental productivity = 85 rugs/($60×22) = 0.0644 rugs/dollar

Multifactor productivity = 0.0096+0.17+0.0644 = 0.244 rugs/dollar