Assignment:
The manager of a crew that installs wood floors has tracked the crew's output over the past several weeks. Each worker works 35 hours per week, and cams $ 19 per hour. The wholesale cost of lumber to the company is $4 per square foot, and the company charges its customers $17 per square foot of flooring installed.
|
Week
|
Crew Size
|
Lumber used (sq. ft)
|
Flooring Installed (sq. ft)
|
|
1
|
5
|
480
|
420
|
|
2
|
4
|
351
|
325
|
|
3
|
2
|
220
|
200
|
a. Calculate labor productivity for each of the weeks shown.
b. Suppose that in addition to labor cost and wholesale lumber cost, the firm's overhead is 140% of its labor cost. Calculate multifactor productivity for each week.