The head of the ultrasound division of the radiology department in a large university hospital would like to measure the labor and multifactor productivity for a complete abdomen procedure. Data collected for the last four years for the procedure are presented in the following table.

Measurement	Year 1	Year 2	Year 3	Year 4
Price ($)	680	684	690	695
Volume	5,432	6,207	6,800	6,316
Labor ($)	75,000	80,500	80,000	82,000
Materials ($)	3,250	3,500	3,400	3,510
Overhead ($)	6,500	6,700	7,000	7,200

a) Calculate the multifactor and labor productivity ratios for the last four years.

b) Interpret your findings. Do not just state the change (increase or decrease) in productivity ratios, but also explain possible reasons for the change.

Answer rating: 100% (QA)

a Measurement Year 1 Year 2 Year 3 Year 4 Price 680 684 690 695 Volume 5432 6207 6800 63... View the full answer