Labor productivity and the multifactor productivity per unit| Marketing Management
The following shows data on the average number of customers processed by several bank service units each day. The hourly wage is $25, the over head rate is 1.0 times labor cost, and material cost is $5 per customer.
Unit: A B C D
Employees: 4 5 8 3
Customers process per day: 36 40 60 20
A) Compute the labor productivity and the multifactor productivity per unit. Use an 8 hr day for multifactor productivity.
B) Suppose a new more standardized procedure is introduced that will enable each employee to process one additional customer per day. Compute expected labor and multifactor productivity rates for each unit.