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?
Hi, please see the response to your posting as below:
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
Solution contains labor productivity ratio and multi factor productivity ratio for Med -Tech.