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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?
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Illustrate what is the multifactor productivity ratio. Compared to the result obtained, did productivity increase or decrease for the course process.
What are the consequential effects of the above mentioned phenomenon on the economy and labor market?
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