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Compute the multifactor productivity measure (output in sales dollars) for each week using the data provided below for the production of chocolate bars. Assume 45-hour weeks and an hourly wage of $14. Overhead is 2.5 times the total weekly labor cost. Material cost is $12 per pound. Standard price to sell is $200 per unit.
Week Output (units) Workers Material (lbs)
1 2,500 6 520
2 2,750 7 540
3 2,850 8 560
4 3,000 9 580
b) What do the productivity figures suggest? (What is the trend?)
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