The following data is for production of chocolate bars over a four-week period. Assume 40-hour weeks and an hourly wage of $12. Overhead is 1.5 times weekly labor cost. Material cost is $6 per pound. WeekOutput (units)WorkerMaterial (lbs.)123430,00033,60032,20035,4006778450470460480 Compute the multifactor productivity measure for each of the four weeks. What do the figures suggest? Compute the productivity growth from week 1 to week 4.

Answered: multifactor productivity

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Question

The following data is for production of chocolate bars over a four-week period. Assume 40-hour weeks and an hourly wage of $12. Overhead is 1.5 times weekly labor cost. Material cost is $6 per pound.

Week

Output (units)

Worker

Material (lbs.)

30,000

33,600

32,200

35,400

450

470

460

480

Compute the multifactor productivity measure for each of the four weeks.

What do the figures suggest? Compute the productivity growth from week 1 to week 4.

Expert Solution

Step 1

Multifactor productivity indicating the proportion between output and input. Using the given information, we can calculate the multifactor productivity using the given formula

Productivity = output/sum value of input

Here, we can calculate the multifactor productivity of each week like given below.