Problem:
As part of a study for the Department of Labor Statistics, you are assigned the task of evaluating the improvement in productivity of small business. Data for one of the small businesses you are to evaluate is shown below. The data are the monthly average of last year and the monthly average this year.
Required:
Question 1) Determine the multifactor productivity using the following costs:
- labor $8 per hour;
- capital .83% per month of investment;
- energy $.60 per BTU.
|
Average Month |
|
|
Last Year |
This Year |
| Production (dozen) |
1,500 |
1,500 |
| Labor (hours) |
350 |
325 |
| Capital investment ($) |
15,000 |
18,000 |
| Energy (BTU) |
3,000 |
2,750 |
Last year the multi factor production was_______ dozens/$ round respones three decimals places. Solve the problem and show all work.