Telco Inc. ,a manufacturing firm,is calculating its monthly productivity report.From the following raw data calculate the multifactor productivity. Labor rate $20
Machine rate $15
Units produced 50,000
Labor hours 4,000
Machine hours 2,000
Cost of materials $20,000
Cost of energy $5,000
A)0.370
B)0.625
C)1.500
D)1.667

Question

Quizplus · Accepted Answer

Multifactor productivity = (Output / (Labor input + Machine input + Material input + Energy input))= (50,000 / ((4,000 * $20) + (2,000 * $15) + $20,000 + $5,000))= (50,000 / $105,000)= 0.476 (approx.)

Telco Inc ,A Manufacturing Firm,is Calculating Its Monthly Productivity Report