For the previous month, the Ellram Lounge served 1,500 customers with very few complaints. Their labor cost was $3,000; material cost was $800; energy cost was $200. and building lease cost was $1500. They were open 26 days during the month and the lounge has 20 seats. They were open six hours per day and the average customer stay is one hour.
a. Calculate the single-factor productivities and the overall multiple-factor productivity. How could they improve productivity?
b. Calculate the monthly capacity and capacity utilization.