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Productivity and Productivity Growth
Wells Fargo Bank employs four loan officers, each working eight hours per day. Each officer processes an average of 4.0 loans per day. Each loan officer has a different salary, but the total payroll for the four loan officers combined is $533 per day.
What was the labor productivity (in loans per labor hour) for the bank?
What was the capital productivity (in loans per labor dollar) for the bank?
For parts c and d, the bank is considering the purchase of a new computer system for the loan officers. The software will enable each loan officer to process 5.6 loans per day.
What is the new labor productivity (in loans per labor hour) for the bank?
What is the labor productivity growth if the software is purchased?
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