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    Calculate the productivity ratios

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    You have a company that makes 30000 light bulbs per day with the following resources:

    Labor : 250 hours per day@$15.00 per hour
    Raw Material : 60000 pounds of glass per day @$0.50 per pound
    Energy : $10000 per day
    Capital : $3500 per day

    1) What is the productivity per labor hour for the light bulbs you make?
    2) What is the multifactor productivity for these bulbs?
    3) What is percentage decrease in multifactor productivity if your energy bill doubles without cutting you production or changing any other inputs?

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    Solution Summary

    Solution depicts the steps to estimate the desired productivity ratios.