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Long Beach Bank uses three loan officers, each working eight hours per day. Each officer procedures average of five loans per day. The bank’s payroll cost for officers is $820 per day and there is daily overhead expenditure of $500. The bank has just bought new computer software which should facilitate each bank officer to process eight loans per day, though the overhead expenditure will increase to $550.

a) What is multifactor productivity before and after execution of new software?

b) What is multifactor percentage change in productivity?

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