employee works an average of 150 hours per month. Employees are paid at $12 per hour, the materials cost is $60 per trampoline, and overhead cost is $3,500. What is the multifactor productivity ratio for Buckeye Trampoline Shop? (Enter your response rounded to one decimal place.)

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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The Buckeye Trampoline Shop produces one size of trampolines. Out of the 100
trampolines that begin in production each month, only 75 percent pass inspection and
are considered good enough to sell. The other 25 percent are scrapped due to quality
problems that are identified after they have completed the production process. Each
trampoline sells for $307. Each trampoline only requires 8 hours of labor because
much of the process is automated. Every employee works an average of 150 hours
per month. Employees are paid at $12 per hour, the materials cost is $60 per
trampoline, and overhead cost is $3,500.
What is the multifactor productivity ratio for Buckeye Trampoline Shop? (Enter your
response rounded to one decimal place.)
Transcribed Image Text:The Buckeye Trampoline Shop produces one size of trampolines. Out of the 100 trampolines that begin in production each month, only 75 percent pass inspection and are considered good enough to sell. The other 25 percent are scrapped due to quality problems that are identified after they have completed the production process. Each trampoline sells for $307. Each trampoline only requires 8 hours of labor because much of the process is automated. Every employee works an average of 150 hours per month. Employees are paid at $12 per hour, the materials cost is $60 per trampoline, and overhead cost is $3,500. What is the multifactor productivity ratio for Buckeye Trampoline Shop? (Enter your response rounded to one decimal place.)
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