# solution

1. A company that processes strawberries is able to produce 600 jars of strawberry jam in 90 minutes with four workers. What is labor productivity (output per labor Hour). How many jars can be produced per hour?

2. A health club has three employees who work on lead generation. Each employee works 40 hours a week and is paid \$25 an hour. Each employee identifies an average of 500 possible leads a week from a list of 8,000 names. Approximately 10 percent of the leads become members and pay a one-time fee of \$100. Material costs are \$200 per week, and overhead costs are \$1,000 per week. Calculate the multifactor productivity for this operation in fees generated per dollar of input.

3. Compute the multifactor productivity measure for an eight-hour day in which the total usable output was 500 units, produced by three workers who used a total of 400 pounds of materials. Workers have an hourly wage of \$25, and material cost is \$1 per pound. Overhead is 1.5 times labor cost. Determine the multifactor productivity.(Output per \$ of input)

4. A wrapping-paper company produced 3,000 rolls of paper one day. Labor cost was \$200, material cost was \$50, and overhead was \$400. Determine the multifactor productivity.(Output per \$ of input)