What is the multifactor productivity

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The ABC Auto Service Center currently employs 5 technicians. With this crew, they can process 100 customers per day. The hourly wage rate for the technicians is $25: the overhead cost is 2 times the labor cost, and materials cost is $5 per customer, while each customer is expected lo generate $200 of revenue for the Service Center. Read carefully, show your work on the exam paper, and round your productivity numbers to four decimal places.

1. Assuming an 8-hour work day. what is the multifactor productivity for ABC?

2. Suppose a new, more advanced process is to be introduced that will enable each technician to process 4 additional customers per day. What is the productivity growth with the new process?

Reference no: EM131444308

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