A process has an output per day of 7,040 units. the inputs to produce this are labor $1000, materials $520; and overhead $2000. what is the productivity?
The multifactor productivity can be calculated using the the units produced and the total costs. Units = 7040 Total costs = 1000 + 520 + 2000 Total costs = $3,520
Multifactor productivity = 7,040 / 3,520 Multifactor productivity = 2 units per dollar
