Viewing this from a total (multifactor) productivity perspective, what is her productivity at
present and with the new paint?
Present: Given: # of dolls= 240 Supplies cost = $20 Energy cost = $4 Labor cost = 12 hours per day*10 per hour = $120 Material cost = 3.50 per doll * 240 dolls= $840
Formula: total (multifactor) productivity = # of dolls/ (Total costs)
Total cost: Labor + material + supplies + energy Total cost: 120 + 840 +20 + 4 Total cost = 984
total (multifactor) productivity =240/984 total (multifactor) productivity =0.24
New: Given: # of dolls= 360 Supplies cost = $20 Energy cost = $4 Labor cost = 12 hours per day*10 per hour = $120 Material cost = 3.50 per doll * 360 dolls= $1260
Formula: total (multifactor) productivity = # of dolls/ (Total costs)
Total cost: Labor + material + supplies + energy Total cost: 120 +1260 +20 + 4 Total cost = 1404
total (multifactor) productivity =360/ 1404 total (multifactor) productivity =0.26
How would total (multifactor) productivity change if using the new paint raised Ms. French's material costs by $0.50 per doll? Given: 3.50 + 0.50 = $4 # of dolls= 360 Supplies cost = $20 Energy cost = $4 Labor cost = 12 hours per day*10 per hour = $120 Material cost = 4 per doll * 360 dolls= $1440
Total cost: Labor + material + supplies + energy Total cost: 120 +1440 +20 + 4 Total cost = 1584
total (multifactor) productivity =360/ 1584 total (multifactor) productivity =0.23