Question

As part of a study for the Department of Labor Statistics, you are assigned the task of evaluating the data are the monthly average of last year and the montly average this year Labor $7 per hour Energy $0 50 per BTU Click the icon to view the data for one of the small businesses you are to evaluate a) Determine the mutifactor productivity with dollars as the common denominator for last year The multilactor productivity with dolars as the common denominator for last year isdozen' (Round your response to three deoimal places) b) Determine the multifactor productivity with dollars as the common denominator for this year The mutifactor productivity with dollars as the common denominator for this year isdozen (Round your response to three decimal places) c) Determine the percent change in productivity for the monthly average last year versus the monthly average this year on a mutifactor basis The percent change in produdity for the monthly average is % Round your respor setodne dear apace)

Answer 1

Total cost can be denoted as per following :

Total cost , $

= Labor cost/ hour x Labor hours + Capital rate percentage on investment per month x 12 months x Capital investment ( $ ) + Energy cost per BTU x Energy ( BTU)

= 7 x Labor hours + 0.81% x 12 x Capital investment ( $ ) + 0.50 x Energy ( BTU)

= 7 x Labor hours + 0.0972 x Capital investment ( $ ) + 0.50 x BTU

Total cost for last year , $

= 7 x 400 + 0.0972 x 12000 + 0.50 x 3900

= 2800 + 1166.40 + 1950

= 5916.40

Total cost for this year , $

= 7 x 370 + 0.0972 x 16000 + 0.50 x 3700

= 2590 + 1555.20 + 1850

= 5995.20

Multifactor productivity for last year

= Production / Total cost

= 1200 / 5916.40

= 0.203 ( rounded to 3 decimal places ) dozens/ $

Multifactor productivity for this year

= Production / Total cost

= 1200 / 5995.20

= 0.200 ( rounded to 3 decimal places )   dozen/ $

Percentage change in productivity last year vs this year

= ( 0.203 – 0.200 ) / 0.200 x 100

= 0.003 /0.200 x 100

= 1.5%