High School

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Kleen Karpet cleaned 65 rugs in October, consuming the following resources:

- Labor: 520 hours at $13 per hour
- Solvent: 100 gallons at $5 per gallon
- Machine rental: 20 days at $50 per day

a. What is labor productivity?

b. What is multifactor productivity?

Answer :

Labor productivity for Kleen Karpet is 0.125 rugs per hour, while multifactor productivity (MFP) is 0.00787 rugs per dollar of input cost.

To calculate labor productivity, we divide the total output (in this case, the number of rugs cleaned) by the total labor hours consumed. So for Kleen Karpet, labor productivity is calculated as:

65 rugs / 520 hours = 0.125 rugs per hour

To calculate multifactor productivity (MFP), we consider the inputs of labor, materials, and capital. The total cost of all inputs is calculated by adding the costs of labor, solvent, and machine rental:

Labor: 520 hours imes $13 per hour = $6,760
Solvent: 100 gallons imes $5 per gallon = $500
Machine rental: 20 days imes $50 per day = $1,000
Total input cost: $6,760 + $500 + $1,000 = $8,260

MFP is then the number of rugs cleaned divided by the total input cost:

65 rugs / $8,260 = 0.00787 rugs per dollar

This MFP number indicates how many rugs are cleaned per dollar of total input cost.

Thanks for taking the time to read Kleen Karpet cleaned 65 rugs in October consuming the following resources Labor 520 hours at 13 per hour Solvent 100 gallons at 5 per gallon. We hope the insights shared have been valuable and enhanced your understanding of the topic. Don�t hesitate to browse our website for more informative and engaging content!

Rewritten by : Barada