Determine the multifactor productivity measure for the combination of labour, energy, and material using the following data: Output: 5400 unitsInputs: Labour100 hours @ $25 per hourEnergy2200 kW-hrs @ $0.15 per kW-hrMaterial $1,490
Question
Determine the multifactor productivity measure for the combination of labour, energy, and material using the following data: Output: 5400 unitsInputs: Labour100 hours @ 0.15 per kW-hrMaterial $1,490
Solution
To calculate the multifactor productivity measure, we first need to determine the total cost of all inputs.
-
Calculate the total cost of each input:
- Labour: 100 hours * 2500
- Energy: 2200 kW-hrs * 330
- Material: $1490
-
Add up all the costs to get the total cost of inputs:
- Total cost = Labour cost + Energy cost + Material cost
- Total cost = 330 + 4320
-
Now, calculate the multifactor productivity measure by dividing the total output by the total cost of inputs:
- Multifactor productivity = Output / Total cost
- Multifactor productivity = 5400 units / $4320 = 1.25 units per dollar
So, the multifactor productivity measure for the given combination of labour, energy, and material is 1.25 units per dollar.
Similar Questions
If all you knew about a production system was that total daily output was 1000 units and the total labor necessary to produce the 1000 units was 1200 hours, and the total materials used were 1500 units, what kind of productivity measure could you use to compute productivity? Group of answer choicesOnly total measureOnly multifactor measureOnly partial measureBoth multifactor measure and total measureBoth partial measure and multifactor measure
Which of the following is a partial measure of productivity?Group of answer choicesOutput/LaborInputs/OutputOutput/(Labor + Capital + Energy)Output/(Labor+Materials)Output/Inputs
Productivity is output per worker hour.Group of answer choicesTrueFalse
What is output per labor-hour?Multiple choice question.ProductivityCapital-intensiveLabor-intensiveA factor of production
3. A toy manufacturer produces 2500 units of soft toys per month (20 days working) sold at Rs. 110 each. The cost of synthetic fur is Rs.100 per meter, cost of labour is Rs.160 per day (8 hours working) and the cost of sponge waste for filling is Rs.50 per kg. The manufacturer employs 20 workers per day, and uses 1000 meters of synthetic fur and 250 kg of sponge waste per month. What is the labour productivity and raw material productivity of the firm? What is the total productivity of the firm?
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.