Operations Management
Operations Management
13th Edition
ISBN: 9781259667473
Author: William J Stevenson
Publisher: McGraw-Hill Education
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Chapter 2, Problem 9P

A company offers ID theft protection wing leads obtained from client banks. Three employees work 40 hours a week on the leads, at a pay rate of $25 per hour per employee. Each employee identifies an average of 3,000 potential lead, a week from a list of $ 5,000. An average of 4 percent actually sign up for the service, paying a one-time fee of $70. Material costs are $1,000 per week, and Overhead costs arc $9,000 per week. Calculate the multifactor productivity for this operation in fees generated per dollar of input.

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