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Question 1: Productivity
The following table shows data on the average number of customers processed by several vehicle service units each day. The hourly wage rate is $25, the overhead rate is 1.0 times labor cost, and material cost is $5 per customer.
Unit Employee Customers Processed/Day
A 4 36
B 5 40
C 8 60
D 3 20
a) Compute multifactor productivity for each unit. Use an 8-hour day for multifactor productivity?
b) If Unit B is able to increase its number of customers processed per day from 36 to 50, what will its new multifactor productivity be?
c) What is the percentage change in factor productivity?
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