Tech-Ed Source is a company that administers standardized certification tests in the information technology field. Those who pass obtain industry certifications that are important for advancement in their field. Average cost to test-takers is $50 per test. Labor costs for the testing facility averages $10 per test, materials costs are $5 per test-taker, and overhead costs are averaged at $15 per test-taker.

a) What is the multifactor productivity ratio for Tech-Ed Source? What does your finding mean?

b) If the average facility proctor spends two hours on each test-taker, what is the labor productivity ratio?