Study the information provided below and answer the questions that follow.

 A small South African furniture enterprise manufactured 1000 school desks per day during June 2021, consuming the following resources: Labour: 20 employees each working 8 hours per day for 25 days @ R60.00 per hour Materials: 25 days at R10 000 per day Machine rental: 25 days at R1000.00 per day Energy and capital cost: R150 000 during June 2021. 

REQUIRED: Using the information provided above, answer the following questions:

3.1.1 What is the labor productivity per Rand? (Round off answers to 3 decimal places). (4 marks) 3.1.2 What is the multifactor productivity per Rand? (Round off answers to 3 decimal places). (5 marks)

3.1.3 If the output is increased such that 1 200 desks are manufactured per day using the same resources, except energy and capital cost which increases by 10%, what is the new multifactor productivity per Rand? (Round off answers to 3 decimal places). (5 marks)

3.2 Despite the increasing servitization of the global economy, the service sector continues to experience slower growth in productivity. Discuss the possible reasons why the productivity of the service sector has proven difficult to improve.

Answer rating: 100% (QA)

311 To calculate labor productivity per Rand we need to divide the number of desks produced per day by the labor cost per day Number of desks produced per day 1000 Labor cost per day 20 employees 8 ho... View the full answer