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As part of a study for the department of labor statistics, you are assigned the task of evaluating the improvement in productivity of small businesses.
Data for one of the small business you are to evaluate is shown below. The data are the monthly average of last year and the monthly average this year.
Determine the multifactor productivity using the following costs:
Labor - $8 per hour;Capital - 0.83% per month of investment ;energy - $0.60 per BTU
Monthly Average
Production(dozen)Last Year - 1500This Year - 1500Labour(hours)Last Year - 350This Year - 325Capital Investment ($)Last Year - 15000This Year - 18000Energy (BTU)Last Year - 3000This Year - 2750
Last year, the multifactor productivity was -this year the multfactor productivity is -
The percentage change in productivity for the monthly average last year versus the montly average this year on a multifactor basis with dollars as the common denominator is --- %
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