$3.$ Med labs is a facility that provides laboratory tests and evaluations for patients, ranging from analyzing blood samples to performing magnetic resonance imaging $($MRI$).$ The average cost to patients is $$70$ per patient. Labor costs an average of $$15$ per patient, materials costs are $$25$ per patient, and overhead costs are averaged at $$20$ per patient.

Break down the costs for Med$-$Tech labs:

$1.$ Average Cost to Patients: This is the amount patients pay for the services provided by Med$-$Tech labs. It's $$70$ per patient.

$2.$ Labor Costs: Labor costs represent the wages and benefits paid to the employees who perform the medical tests and evaluations. On average, it costs $$15$ per patient.

$3.$ Materials Costs: These costs include the expenses for any materials or supplies used during the medical tests and evaluations. For Med$-$Tech labs, it's $$25$ per patient.

$4.$ Overhead Costs: Overhead costs are the ongoing expenses of operating the facility that cannot be directly attributed to any single patient. This includes rent, utilities, administrative salaries, etc. Med$-$Tech labs average $$20$ per patient for overhead costs.

Calculate the total cost per patient:

Total Cost per Patient $=$ Labor Costs $+$ Materials Costs $+$ Overhead Costs

Total Cost per Patient $=$ $$15+$$$25+$$$20=$$$60$

The total cost per patient is $$70.$

Now, to determine the profit per patient, we subtract the total cost per patient from the average cost to patients:

Profit per Patient $=$ Average Cost to Patients $-$ Total Cost per Patient

Profit per Patient $=$ $$70$$$60=$$$10$

So$,$ Med$-$Tech labs makes a profit of $$10$ per patient.

$$ What is the multifactor productivity ratio for Med labs? What does your finding mean?

$$ If the average lab worker spends three hours for each patient, what is the labor productivity ratio?