On July 1, 2017, Wyler Company placed a new asset into service. The cost of the asset was $90,000 with an estimated 9-year life
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Answer:
Ans. Multifactor productivity (per dollar of input) = 1.9385
Explanation:
Hi, in order to find the multifactor productivity (per dollar of input) , we have to use the following equation.
So let´s find out the amount of each of the items in the equation.
Generated fees.
There are 3 employees and they find 3,000 potential leads every week, but only 4% actually sign up fo that $70 fee. That is:
3(employees)*3,000(leads)*0.04(ratio Effective leads)*$70(fee)=25,200
So the output or generated fees are 25,200.
Input.
Our inputs are: Labour+Materials and Overhead, materials are $1,000, Overhead is $9,000 and Labour is 3 emplyees, working 40 hours at $25 per hour per employee, that is: 3*40*24= $3,000.
Now, we have all we need to use the first equation.
Best of luck