Pear Corporation is considering Alternative A and Alternative B. Costs associated with the alternatives are listed below: Altern
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Answer:
multifactor productivity = 8.3%
Explanation:
given data
Total cost for chemicals = $10
Total cost of labor = $40
Total cost of misc = $5
use of chemical = 50%
solution
first we get here total initial cost that is
total initial cost = 10 + 40 + 5
total initial cost = $55
and
Increase in cost of chemical is = 10 + (0.5) × (10)
Increase in cost of chemical = 15
so Total increase in cost will be
Total increase in cost = $15 + $40 + $5
Total increase in cost = 60
so
increase in cost % = × 100
increase in cost % = × 100
increase in cost % = 91.67 %
so
change in multifactor productivity is = 100% - 91.7%
multifactor productivity = 8.3%