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Joanna is currently working a total of 8 hours per day to produce 250 dolls. She thinks that by changing the paint used for the facial features and fingernails, she can increase the rate to 350 dolls per day. Total material cost for each doll is approximately $3.50; she has to spend $20 in the necessary supplies (expendables) per day; energy costs are assumed to be only $4.00 per day; and she makes $10 per hour for her time.
a) Viewing this from a total (multifactor) productivity perspective, what is her productivity at present and with the new paint in terms of dolls per dollar?
b) If she uses the new paint, by what amount could Joanna's material costs per doll increase without reducing total (multifactor) productivity?
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