Calculate the total productivity measure the multifactor


A division of Miller Chemicals produces water purification crystals for swimming pools. The major inputs used in the production process are labor, raw materials, and energy. The table shows the amount of output produced and input used for 2009 and 2010. Calculate the total productivity measure, the multifactor productivity measures, and the partial productivity measures for both years. What do these measures tell you about this company? Output 2009 2010 Pounds of crystals 100,000 150,000 Input Direct Labor Hours 20,000 28,000 Direct Labor Cost $180,000 $350,000 Energy Used (kwh) 350,000 400,000 Energy Cost $ 5,000 $ 6,000 Raw Materials Use (lb) 120,000 185,000 Raw Material Cost $ 30,000 $ 40,000

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Operation Management: Calculate the total productivity measure the multifactor
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