A company offers ID theft protection using leads obtained from client banks. Three employees each work 40 hours a week on the leads. These employees are each paid $25 per hour. Each employee identifies an average of 3,000 potential leads a week from a list of 5,000 possible leads that each is given. There are no duplications in these three lists. An average of 4 percent of the potential leads actually sign up for the service, paying a one-time fee of $70. Material costs are $1,000 per week, and overhead costs are $9,000 per week. Consider the output as the fees generated.

1.What are the labor hours productivity and the multifactor productivity for this operation.

Labor productivity

Output

9000 Avg. No of potential leads

4% Percent of potential leads

360 Weekly lead signup

$70 One timesign fee

$25,200

Input

40 labor hours per employee

9000 Avg. No of potential leads

360000 Hours

$25,200

$0