Question: I just need answer for part D. The following preamble applies to questions 7 10. Assume that each worker works 40 hours a week and
I just need answer for part D.
The following preamble applies to questions 7 10.
Assume that each worker works 40 hours a week and is paid $15 per hour. Overheads are estimated to be twice the labor cost. Material cost is $6 per kg. The following data on 3 weeks production is available:
| Week | Output (units) | Workers | Material (kg) |
| 1 | 500 | 6 | 45 |
| 2 | 520 | 7 | 46 |
| 3 | 500 | 7 | 46 |
a) Overheads are indirect costs (not directly linked with production), e.g., insurance costs, security, and rentals. The company estimates that the overhead cost is two times the labor cost. Hence, one of the input factors (overhead cost) will be 2x(labor cost).
(Round your answers to 4 decimal places)
What is the multifactor productivity in Week 1? Units per $:
b.) What is the multifactor productivity in Week 2? Units per $:
c.) What is the multifactor productivity in Week 3? Units per $:
d.) What is the productivity growth in Week 3 (compared to Week 2)?
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