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?