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Assignment:
(The manager of a crew that installs wood floors has tracked the crew's output over the past several weeks (see the table below). The wholesale cost of lumber to this small firm is $6 per square foot. Each worker works 40 hours per week, and earns $25 per hour. The company's overhead rate is 160%, while it charges its customers $15 per square foot of flooring installed
Week Crew Size Lumber Used (sq. ft) Flooring Installed (sq ft)
1 4 480 440
2 2 250 232
1. What is the percentage change in labor productivity from week 1 to week 2.
2. What is the percentage change in labor productivity from week 1 to 2 using value($) of output divided by number of worker hours.
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