30.03.2023 - 18:46

Kleen Karpet cleaned 65 rugs in October, consuming the following resources: Labor: 520 hours at $13 per hour Solvent: 100 gallons at $5 per gallon Machine rental: 20 days at $50 per day a. What is labor productivity? b. What is multifactor productivity

Kleen Karpet cleaned 65 rugs in October, consuming the following resources:

Labor: 520 hours at $13 per hour

Solvent: 100 gallons at $5 per gallon

Machine rental: 20 days at $50 per day

a. What is labor productivity?

b. What is multifactor productivity?

Answers (1)
  • bra4
    April 5, 2023 в 19:16

    a. Labor productivity measures the efficiency of labor in producing output. It is calculated by dividing the total output (number of rugs cleaned) by the total input of labor (hours worked by employees) during the same period.

    In this case, the total output is 65 rugs and the total input of labor is 520 hours. Therefore, the labor productivity of Kleen Karpet in October can be calculated as follows:

    Labor productivity = Total output ÷ Total input of labor = 65 rugs ÷ 520 hours = 0.125 rugs per hour

    Therefore, Kleen Karpet cleaned 0.125 rugs per hour of labor input in October.

    b. Multifactor productivity measures the efficiency of all the factors of production, including labor, capital, and materials, in producing output. It is calculated by dividing the total output by the total input of all the factors of production during the same period, weighted by their respective prices.

    In this case, the total output is still 65 rugs. The total input of labor is 520 hours, the total input of solvent is 100 gallons at $5 per gallon, and the total input of machine rental is 20 days at $50 per day, which translates to $1,000. Therefore, the multifactor productivity of Kleen Karpet in October can be calculated as follows:

    Multifactor productivity = Total output ÷ [Total labor input × Labor cost + Total solvent input × Solvent cost + Total machine rental input × Machine rental cost] = 65 rugs ÷ [520 hours × $13 per hour + 100 gallons × $5 per gallon + $1,000 machine rental cost] ≈ 0.0015 rugs per dollar of input cost

    Therefore, Kleen Karpet cleaned 0.0015 rugs per dollar of input cost in October.

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