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What is the multifactor productivity for jim company

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Question: Jim's auto service company currently employs 5 technicians. They can process 100 customers per day. The hourly wage rate for the technicians is $25. The overhead cost is 2 times the labor cost, and the materials cost is $5 per customer, while each customers is expected to generate $200 of revenue for the service center. (Round to 4 decimal places)

A) Assuming an 8 hour work day. What is the multifactor productivity for Jim's company?

B) Suppose a new, more advanced process is to be introduced that will enable EACH technician to process 4 additional customers per day. What is the productivity GROWTH with the new process? (calculate new productivity before calculating the growth)

Reference no: EM131748995

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