Hokey min's kleen karpet cleaned 75 rugs in october, consuming the following resources:
labor: 550 hours at $17 per hour
solvent: 120 gallons at $8 per gallon
machine rental: 22 days at $50 per day
(a) labor productivity per dollar = rugs/dollar (round your response to four decimal places).
(b) multifactor productivity =/dollar (round your response to four decimal places).

(a) 0.0080 Rugs/U$S

(b) 0.0066 Rugs/U$S

Explanation:

a) The labor productivity per dollar is :

(Total products/ services in a a period) /(total of U$S spent in labor to do so)

Total products = 75 Rugs

USS spent in labor = 500 hours*17$/hr= 9350 U$S

Then Labor Productivity = 75 rugs/ 9350 U$S= 0.0080 Rugs/ U$S

b) The Multifactor productivity is :

(Total products/ services in a a period) /(total of U$S spent in resources to do so)

*Total products = 75 Rugs

*USS spent in resources = 500 hours*17$/hr+120 gal * 8 U$S/ gal+22 U$S/day*50 days= 9350 U$S+960 U$S+1100 U$S  = 11.410 U$S

Then multifactor Productivity = 75 rugs/ 11410 U$S= 0.0066 Rugs/ U$S

the answer is a.

by: nicholas dooley