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COMPUTING PRODUCTIVITY MEASURES
A division of Miller Chemicals produces water purification crystals for swimming pools. The major inputs used in the production process are labor, raw materials, and energy.
The table shows the amount of output produced and input used for 2009 and 2010. Calculate the total productivity measure, the multifactor productivity measures, and the partial productivity measures for both years. What do these measures tell you about this company?
Output
2009
2010
Pounds of crystals
100,000
150,000
Input
Direct Labor Hours
20,000
28,000
Direct Labor Cost
$180,000
$350,000
Energy Used (kwh)
350,000
400,000
Energy Cost
$5,000
$6,000
Raw Materials Use (lb)
120,000
185,000
Raw Material Cost
$ 30,000
$ 40,000
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