The franchise owner of a Los Angeles franchised Kleen House Inc. is interested in the productivity of her business in the greater Los Angeles area. She has the following information for the last two quarters of 2015.
During the 3rd quarter of 2015 her business cleaned 570 houses using 4800 hours of labor at a cost of $12 per hour, 800 hours of secretarial work at $15 per hour and machine rental for 60 days at $50 per day.
In the 4th quarter, her business cleaned 650 houses using 5200 hours of labor at $13 per hour, 1000 hours of secretarial work at $15 an hour and machine rental for 60 days at $50 per day.
Determine:
- The SFP for labor, secretarial work and machine for each quarter.
- Determine if there was a productivity gain or loss in the 4th quarter for each SFP in part a.
- Determine the TFP for each quarter.
- Determine if the company had a TFP gain in the 4th quarter.