The Cool Store manufactures 200 air conditioners every week. The company spends $500 on labor, $3,000 on rent, $1,200 on equipment, and $900 on electricity to produce 20 air conditioners a week. Which of the following indicates the multifactor productivity of the company?
A) 0.036
B) 0.207
C) 0.103
D) 0.072

Question

Quizplus · Accepted Answer

Multifactor productivity = Output / (Labor + Rent + Equipment + Electricity)= 200 / (500 + 3,000 + 1,200 + 900)= 200 / 5,600= 0.036

The Cool Store Manufactures 200 Air Conditioners Every Week