A manufacturer of machine-made rugs in Pretoria wants to measure the productivity of his workers. He employs 10 workers. Over a week, his workers produce 120 rugs, each 3 feet by 5 feet. Labour costs are R60 a week per worker, making for a total of R600. Material costs are R200 per carpet, making for a total of R24 000. The overhead costs are R400. Each rug is valued at R600 before markups for other expenses and profit.
1. What is the productivity of the workers measured by day?
2. What is the multifactor productivity ratio for the factory?