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Productivity.
The manager of a crew that installs wood floors has tracked the ciew's output over the past several weeks. Each worker works 35 hours per week, and earns $19 per hour.
The wholesale cost of lumber to the company is $6 per square foot, and the company charges its customers $21 per square foot of flooring installed :
Week
Crew Size
Lumber used(sq.ft)
Flooring Installed (Sq ft)
1
6
480
430
2
4
381
335
3
260
228
5
252
487
a. Calculate labor productivity for each of the weeks shown.
b. Suppose that in addition to labor cost and wholesale lumber cost, the Ennis overhead is 140% of its labor cost. Calculate multifac tor productivity for each week shown
II. In a few paragraphs, explain why
a. Productivity is important concept to a business or government entity
b. Measuring productivity is also very important to an entity
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