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Exercise 18-46 (Algo) Total Factor Productivity (LO 18-6) Trombly Fabrication has three production facilities located in the state, each producing the same basic mix
Exercise 18-46 (Algo) Total Factor Productivity (LO 18-6) Trombly Fabrication has three production facilities located in the state, each producing the same basic mix of products. Facility 1 was the original plant and the only one for several years. Facilities 2 and 3 were added recently to handle the increased volume. Data for the three facilities on output and the three primary inputs for the most recent period follow: Value of product produced Materials cost Labor cost Overhead Facility 1 $ 549,698 227,000 96,820 104,980 Facility 2 $ 287,108 Facility 3 $ 246,432 142,400 44,100 127,700 40,200 85,900 75,900 Required: a. Compute the total factor productivity for the three production facilities. Note: Round your answers to 2 decimal places. Facility Facility 1 Facility 2 Total Factor Productivity Facility 3
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