Reference no: EM13843482

Student tuition at Paddington University is $150 per semester credit hour. As part of a deal the state supplements school revenue by matching student tuition dollar for dollar. In other words, for each dollar a student pays in tuition, the state pays a dollar that is also considered revenue. The average class size for a three hour course is 30 students. Labor costs are $3000 per class, materials costs the school $10 per student per class and overhead costs are $15000 per class. Paddington University measures output as the total amount of revenue generated.

a) What is the multifactor productivity measure for a course at Paddington University?

b) If instructors work an average of 10 hours per week for 16 weeks for each three-credit hour class of 30 students, what is the labor-hours productivity ratio?

c) Suppose next year, tuition increases to $200 per semester credit hour but the state only pays $80 per semester our instead of the matching it had previously paid. The instructors worked on average 8 hours per week for 16 weeks for each three credit hours class of 30 students. What is the labor-hours productivity ratio here and what is the percent change from part b?