Question
A service unit of Pony Express Bank has 10 employees. Eachemployee receives $20 per hour. Each employee works 8 hours perday. The overhead cost is
A service unit of Pony Express Bank has 10 employees. Eachemployee receives $20 per hour. Each employee works 8 hours perday. The overhead cost is 1.5 times the labor cost. The serviceunit processes 100 customers per day. The material cost is $10 percustomer. What is the total factor productivity for the serviceunit? Use customers processed per dollar spent on labor, overhead,and material as the measure of total factor productivity.
a. 0.025 customer processed per dollar
b. 0.02 customer processed per dollar
c. 0.0625 customer processed per dollar
d. 0.1 customer processed per dollar
e. 0.0417 customer processed per dollar
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