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Med-Tech labs is a facility that provides medical tests and evaluations for patients ranging from analyzing blood samples to performing MRI's. Average cost to patients is \$60 per patient. Labor costs average \$15 per patient, material costs are \$20 per patient, and overhead costs are averaged at \$20 per patient.
a.) What is the multifactor productivity ratio for med-tech? What does your finding mean?
b.) If the average lab worker spends three hours for each patient, what is the labor productivity ratio?

Solution Preview

Productivity is a measure of efficiency; specifically it is a measure of how efficiently inputs are converted into output.
Productivity = Output/Input

In single factor productivity there is only one input, therefore single factor productivity = Output/Input

In ...

Solution Summary

Solution contains labor productivity ratio and multi factor productivity ratio for Med -Tech.

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