Solution-1.

Output= 120 boxes per day

Total Labor= 04 employees

No of Labor hours= 40 hours per day

a) Single Factor Productivity (Labor Productivity)

= 120 / 40

=3 boxes per labor hour

b) Single Factor Productivity (Labor Productivity) with new output

New output= 125 boxes per day

New productivity= 125/40

= 3.125 boxes per labor hour

c) Unit Increase in Productivity

Change in productivity= (New Productivity – Old Productivity)/ Old Productivity

= (3.125-3)/3

=0.0416
 d) Percentage change in productivity
= ((New-Old)/Old) * 100
=0.0416*100
=4.16 %

Solution-1.2

Output= 160 valves per shift

No of Labors= 10 person

Total No of hours = 10 *8-hour shift= 80 hours

a) Single Factor Productivity (Labor Productivity)

= 160 / 80

= 2 valves per hour

b) Single Factor Productivity (Labor Productivity) with new output

New output= 180 valves

New productivity= 180/80

= 2.25 valves per hour

c) Percentage change in productivity

= ((2.25-2)/2) *100 = 12.5 %

Solution-1.7

Output = 65 rugs per month

Labor Hours= 520 hours

a) Single Factor Productivity (Labor Productivity)

= 65 / 520

=0.125 rugs per hour

a) Multifactor Productivity (Total Factors Productivity)

Labor = 520 hours at $13 per hours
Total labor wages = 520 * 13 = $6760
Solvent= 100 gallons at $5 per gallon
Total gallon expenses= 100 * 5= $500
Machine Rental = 20 days at $50 per day
Total Machine Rent= 20 * 50 = $1000

Multifactor Productivity = Output / Total inputs

= 65 / (6760 + 500 +1000)
= 65 / 8260 =0.0078 rugs per dollar
Solution-1.10

Output = 375 autos per year

Inputs:

Total Labor= 10,000 hours

Suspension and Engine modifications kit= 500

Energy= 100,000 KWH

Given:

Labor cost = $20 per hour

Total Labor Cost = $20 * 10,000 = $200,000

Kits cost = $1000 each

Total Kits cost= $1000 * 500 = $500,000

Energy cost = $3 per Kilo-watt hour

Total Energy Cost= $3* 100,000 = $300,000

Multi-factor Productivity

= 375 / (200,000 + 500,000 + 300,000)

= 375 / 10, 00,000

= 0.000375 autos per dollar input

I will share the MFP for given scenario as 0.000375 autos per dollar input

Solution-1.17

Last Year – Multifactor Productivity

Output= 1500 dozen

Total Labor cost = 350 *$8 = $2800

Total Capital Investment = 0.83 % of $15,000= $12450

Total Energy = 3000 * $ 0.6 = $1800

Last Year- MFP

= 1500 / (2800 + 12450 + 1800)

= 1500 / 17050

= 0.0879 output per dollar input

This Year – Multifactor Productivity

Output= 1500 dozen

Total Labor cost = 325 *$8 = $2600

Total Capital Investment = 0.83 % of $18,000= $14940

Total Energy = 2700 * $ 0.6 = $1620

This Year- MFP

= 1500 / (2600 + 14940 + 1620)

= 1500 / 19160

= 0.0782 output per dollar input

Percentage Change in Productivity

= (This Year – Last Year) / Last Year) * 100

= ((0.0782 – 0.0879) / 0.0879) * 100

= -11.03% (productivity has declined)