Question: Coach Bjourn Toulouse led the Big Red Herrings to several

Coach Bjourn Toulouse led the Big Red Herrings to several disappointing football seasons. Only better recruiting will return the Big Red Herrings to winning form. Because of the current state of the program, Boehring University fans are unlikely to support increases in the $192 season ticket price.
Improved recruitment will increase overhead costs to $30,000 per class section from the current $25,000 per class section. The university's budget plan is to cover recruitment costs by increasing the average class size to 75 students. Labor costs will increase to $6,500 per 3-credit course. Material costs will be about $25 per student for each 3-credit course. Tuition will be $200 per semester credit, which is supplemented by state support of $100 per semester credit.
a. What is the multifactor productivity ratio? Compared to the result obtained in Solved Problem 1, did productivity increase or decrease for the course process?
b. If instructors work an average of 20 hours per week for 16 weeks for each 3-credit class of 75 students, what is the labor productivity ratio?

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  • CreatedNovember 07, 2013
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