Question

Two car wash employees are paid $7.50 an hour each and are capable of washing 12 cars per hour, using $1 of water and $2 of soap and other cleaning supplies. What is the multifactor productivity of this operation?
0.66 cars per dollar
1.05 dollars per car
0.95 cars per dollar
1.8 dollars per car

Answer 1

Answer:

Option A.

Step-by-step explanation:

Given information: Number of employees = 2, Number of hours = 1

Number of car =  12, Cost of water = $1, Cost of Soap = $2

Salary of each employee = $7.50 each hour

Using these information we get

Salary of 2 employees = $15 each hour

$\text{Multifactor productivity}=\dfrac{Outp ut}{Inp ut}$

Output = 12 cars

Input = $15 + $1 + $2 = $18

$\text{Multifactor productivity}=\dfrac{12}{18}$

$\text{Multifactor productivity}=0.6666..$

$\text{Multifactor productivity}\approx 0.66$

The multifactor productivity of this operation is 0.66 cars per dollar.

Therefore, the correct option is A.