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Compute multifactor productivity for unit

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Reference no: EM132630018

The following table shows data on the average number of customers processed by several vehicle service units each day. The hourly wage rate is $25, the overhead rate is 1.0 times labor cost, and material cost is $5 per customer.

Unit        Employee      Customers Processed/Day

A              4                      36

B              5                      40

C             8                      60

D             3                      20

  1. Compute multifactor productivity for each unit. Use an 8-hour day for multifactor productivity.
  2. If Unit B is able to increase its number of customers processed per day from 36 to 50, what will its new multifactor productivity be?
  3. What is the percentage change in factor productivity?

Reference no: EM132630018

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