A process has an output per day of 7,040 units. the inputs to produce this are labor $1000, materials $520; and overhead $2000. what is the productivity?

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23-01-2017
Mathematics

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A process has an output per day of 7,040 units. the inputs to produce this are labor $1000, materials $520; and overhead $2000. what is the productivity?

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scme1702 scme1702 · Answer 1 · 2017-01-31T15:14:57+01:00

scme1702 scme1702

31-01-2017

The multifactor productivity can be calculated using the the units produced and the total costs.
Units = 7040
Total costs = 1000 + 520 + 2000
Total costs = $3,520

Multifactor productivity = 7,040 / 3,520
Multifactor productivity = 2 units per dollar

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