Problem

1. Compute the multifactor productivity measure (output in sales dollars) for each week using the data provided below for the production of chocolate bars. Assume 40-hour weeks and an hourly wage of $16. Overhead is 1.5 times the total weekly labor cost. Material cost is $24 per pound. Standard price to sell is $150 per unit.

1. What do the productivity figures suggest? (What is the trend?)

Week Output (units) Workers Material (lbs) 1 2,500 6 520 2. 2,750 7 540 3 2,850 8 560 4 3,000 9 580