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    Single/Multi-Factor Productivity

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    An Appliance Service company made house calls and repaired 10 lawn-movers, 2 refrigerators, and 3 washers in an 8-hour day with his standard crew of 3 workers. The average wage for the workers is $12 per hour. The materials cost for a day was $200 while the overhead cost was $50.
    (a) What is the company's labor productivity, if the retail price for each respective service is $50, $200, and $120?
    (b) What is the multifactor productivity, if the crew consisted of two of each type mechanic?
    (c) How much of a reduction in input is necessary for a 5% increase in multifactor productivity?

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    https://brainmass.com/economics/pricing-output-decisions/single-multi-factor-productivity-117483

    Solution Preview

    Please see the attached file.

    An Appliance Service company made house calls and repaired 10 lawn-movers, 2 refrigerators, and 3 washers in an 8-hour day with his standard crew of 3 workers. The average wage for the workers is $12 per hour. The materials cost for a day was $200 while the overhead cost was $50.
    (a) What is the company's labor productivity, if the retail price for each respective service is $50, $200, and $120?
    (b) What is the multifactor productivity, if the crew consisted of two of each type mechanic?
    (c) How much of a reduction in input is necessary for a 5% increase in multifactor productivity?

     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 multi-factor ...

    Solution Summary

    Appliance service company require productivity and the average wages. Word file contains calculations of Single and Multi-Factor Productivity.

    $2.19