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Business
The diagnostic department at Saints Memorial Hospital provides medical tests and evaluations for patients, ranging from analyzing blood samples to performing magnetic resonance imaging (MRI). Average cost to patients is $60 per patient. Labor costs average $15 per patient, materials costs are $20 per patient, and overhead costs are averaged at $20 per patient.
A. What is the multifactor productivity ratio for the diagnostic department? What does this mean?
B. If the average lab worker spends three hours for each patient, what is the labor productivity ratio? What does this finding means?
Important Note:
• Use Excel spreadsheet to complete this assignment.• Submit your answer as an attachment• You must show all calculations and explain your answer in detail.
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