Kingsman Taylor makes tuxedos for men. During a particular week, each of the seven employees worked 42 hours to produce a batch of 96 tuxedos. The tuxedos are sold to retail distribution at $225 each. What is the labor productivity of this manufacturing process in terms of dollars per labor hour?

You recently opened a Pilates studio and you have 2 employees who work on lead generations. Each employee works 40 hours a week and is paid $15 an hour. Each employee identifies an average of 250 possible leads a week from a list of 8,000 names. Approximately 10% of the leads become members and pay a one-time fee of $120. Material costs are $150 per week, and overhead costs are $1,400 per week. What is the expected multifactor productivity ratio in weekly fees generated per dollar input?

Mike’s Guitar Inc. produces low cost, highly durable guitars for beginners. Typically, out of the 100 units that begin production each month, only 85 percent are considered good enough to sell. The other 15 percent are scrapped due to quality problems that are identified after they have completed the production process. Each guitar sells for $270. Because some of the production processes are automated, each unit only requires 5 labor hours. Labor is paid at $12 perhour, materials cost is $40 per unit, and overhead is $11,000. What is the current multifactor productivity ratio?

Mike’s Guitar Inc. produces low cost, highly durable guitars for beginners. Typically, out of the 100 units that begin production each month, only 85 percent are considered good enough to sell. The other 15 percent are scrapped due to quality problems that are identified after they have completed the production process. Each guitar sells for $270. Because some of the production processes are automated, each unit only requires 5 labor hours. Labor is paid at $12 perhour, materials cost is $40 per unit, and overhead is $11,000. What would be the new multifactor productivity ratio if the quality is improved so that only 10% are defective?

Student tuition at Grace University is $160 per semester credit hour. The state supplements school revenue by $60 per semester credit hour. Average class size for a typical 3-credit course is 40 students. Labor costs are $5,000 per class, materials costs are $22 per student per class, and overhead costs are $18,000 per class. The multifactor productivity ratio currently is 1.11 and the labor productivity is $117.86 per labor hour if the instructors work on an average of 14 hours per week for 16 weeks for each 3-credit class of 40 students. To improve its finance, the university decided to change its tuition and class size. The new overhead costs will be $28,000 per class section. Labor costs will increase to $6,500 per 3-credit course. Material costs will be about $25 per student for each 3-credit course with an average class size of 60 students. Tuition will be $200 per semester credit, which is supplemented by state support of $60 per semester credit. What would be the new multifactor productivity ratio for a 3-credit course?

Student tuition at Grace University is $160 per semester credit hour. The state supplements school revenue by $60 per semester credit hour. Average class size for a typical 3-credit course is 40 students. Labor costs are $5,000 per class, materials costs are $22 per student per class, and overhead costs are $18,000 per class. The multifactor productivity ratio currently is 1.11 and the labor productivity is $117.86 per labor hour if the instructors work on an average of 14 hours per week for 16 weeks for each 3-credit class of 40 students. To improve its finance, the university decided to change its tuition and class size. The new overhead costs will be $28,000 per class section. Labor costs will increase to $6,500 per 3-credit course. Material costs will be about $25 per student for each 3-credit course with an average class size of 60 students. Tuition will be $200 per semester credit, which is supplemented by state support of $60 per semester credit. If instructors are going to work an average of 20 hours per week for 16 weeks for each 3-credit class of 60 students, what would be the new labor productivity (in terms of dollar per labor hour) for a 3-credit course?

Your operation has a 5% defect rate (i.e., if you produce 100 items only 95 of those are good for sale). Currently, your factory produces 133 sellable pieces per labor hour. What is the potential productivity growth in labor that could be achieved by eliminating the defect (i.e., 100% yield)? _____%