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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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#### 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.

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