An Appliance Service company made house calls and repaired 10 lawn-movers, 2 refrigerators, and 3 washers in an 8-hour day with his standard crew of 3 workers. The average wage for the workers is $12 per hour. The materials cost for a day was $200 while the overhead cost was $50.
a) Discuss the company's labor productivity, if the retail price for each respective service is $50, $200, and $120?
b) Illustrate out the multifactor productivity, if the crew consisted of two of each type mechanic?
c) How much of a reduction in input is necessary for a 5% increase in multifactor productivity?