Response to the following:
The three person crew worIced their way through the neighborhood. mowing lawns, edging. apply fertilizer and weed treatments where necessary and collecting all the clippings for use as mulch as part of their new green initiative. Their pricing scheme appears in Table A and the mix of orders and service costs appear in Table B:
a. What is their multifactor productivity for these orders in the prestigious Edmcnd Oaks neighborhood?
b. Which of the service combinations they are providing is their most productive from a multifador perspective?
c. What is their labor productivity for the samemix of orders?
Table A: Price List:
|
SERVICE
|
PRICE
|
LABOR
|
MATERIAL
|
|
Mow lawn
|
$75
|
1 hr
|
$2
|
|
Edge
|
$20
|
.25
|
51
|
|
Fertilizer treatment
|
$120
|
.25
|
545
|
|
Weed prevention treatmerd
|
$80
|
.25
|
$25
|
|
Multiple services
|
5% discount times the number of services
|
|
|
Workers are paid at a rate o 510 per hour, and overhead is charged at 120% (or 1.2 nines) labor costs. For a customer that gets both mowing and edging, their $95 bill would be discounted for two &anion times 5% for a total of 10% off the $95 straight charge for a cost of S85.50. A customer receiving three services would get a 15% discount off their service bilL Labor hours shown in Table A are total hours for the three-person crew.
Table B: Orders Processed
|
SERVICE
|
t Customers
|
|
ow lawn & edge
|
6
|
|
ow lawn, Edge, and fertilize
|
3
|
|
ow lawn, Edge, and weed preventiontreahnerd
|
2
|
|
tow lawn & fertilize
|
2
|