The data are monthly average of last year and monthly

Reference no: EM13452419

As part of a study for the Department of Labor Statistics, you are assigned the task of evaluating the improvement in productivity of small businesses. Data for one of the small businesses you are to evaluate is shown below. The data are the monthly average of last year and the monthly average this year. Determine the multifactor productivity using the following costs:

Labor: $8 per hour;
Capital: 0.83% per month of investment;
Energy: $.60 per BTU.

Monthly Average

Last Year This Year

Production (dozen) 1,500 1,500

Labor (hours) 350 325

Capital Investment ($) 15,000 18,000

Energy (BTU) 3,000 2,750

Reference no: EM13452419

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