Question

Question:

Kyle's Karpet Kleaning Company is searching for ways to become more productive in its carpet cleaning process. He has invested in new equipment and has also been experimenting with new cleaning solution recipes in order to lower costs and improve quality. Kyle plans to iron out all the bugs in his improved process so that he can grow his company by franchising. The table below gives information on the last two months of carpet cleaning jobs with the most recent month showing the results after these changes were made:

Outputs/Inputs	Price/Cost per Unit ($)	Two Months Back	Last Month
Carpets Cleaned	$89	64	72
Labor (hours)	$13.50	140	138
Solution (gallons)	$4.99	90	84

What was the two-months-ago single-factor productivity for Kyle's Karpet Kleaning in terms of labor dollars? In other words, for every dollar spent on labor, how many dollars of sales would they obtain? (Display your answer to two decimal places and show your work.)

Answer: _______________________

From two months ago to last month, by what percentage did Kyle's productivity increase or decrease in terms of solution (gallons and number of carpets cleaned, not revenue dollars)?

Write your answer as a percentage. _________________

Display your answer to two decimal places. __________________

What was last month's multi-factor productivity (not two months ago) for Kyle's Karpet Kleaning in terms of dollars? (In other words, how many dollars of revenue did each dollar of inputs produce?) (Display your answer to two decimal places and show your work.)

Answer: _______________________

By what percentage did Kyle's Karpet Kleaning multi-factor productivity improve, in terms of dollars, from two months ago to last month? (Write your answer as a percentage. Display your answer to two decimal places.)

Answer: _______________________

Answer 1

Single-factor productivity for Kyle's Karpet Kleaning in terms of labor dollars= 140/13.50=10.37

Kyle's productivity increase or decrease in terms of solution = (84/90-1)*100= decreases by -6.66%

- Last month's multi-factor productivity= (89*72)/(13.5*138+4.99*84)= 6408/2282=2.81

-Kyle's Karpet Kleaning multi-factor productivity improved

Productivity in two months back= (89*64)/(13.5*140+4.99*90)= 5696/2339=2.44

Improved in productivity= (2.81/2.44-1)*100= 15.16%