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The three person crew worked their way through the neighborhood,mowing lawns,edging,applying fertilizer and weed treatments where necessary and collecting all the clippings for use as mulch as part of their new green initiative.Their pricing scheme appears in Table A and the mix of orders and service costs appear in Table B:
a.What is their multifactor productivity for these orders in the prestigious Edmond Oaks neighborhood?
b.Which of the service combinations provided by them is the most productive service combination from a multifactor perspective?
c.What is their labor productivity for the same mix of orders?
Table A: Price List
Workers are paid at a rate of $10 per hour,and overhead is charged at 120% (or 1.2 times)labor costs.For a customer that gets both mowing and edging,their $95 bill would be discounted for two services times 5% for a total of 10% off the $95 straight charge for a cost of $85.50.A customer receiving three services would get a 15% discount off their service bill.Labor hours shown in Table A are total hours for the three-person crew.
Table B: Orders Processed
New Issue
Financial securities (like stocks or bonds) that are publicly sold for the first time.
Shareholders
Individuals or entities that own shares in a corporation, giving them ownership interest and certain rights in the company.
Subrogation
The legal right for an insurer to pursue a third party that caused an insurance loss to the insured.
Subscription
A payment for a service or product that is provided over a period of time, typically regularly (such as monthly or annually).
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