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Old Productivity:Two workers working 8 hours a day used to produce 2,000 rolls of Paper a day. They were paid at a rate of $

Old Productivity:Two workers working 8 hours a day used to produce 2,000 rolls of Paper a day. They were paid at a rate of $ 20.00 per hour. Selling Price per roll was $ 2.50. Material Cost was $ 75 and Overhead Costs were estimated to be $3.50 per hour.

New Productivity:Due to introduction a computerized Rolling Machine, the same two workers are producing now 3,000 rolls of paper a day. As a result, the selling price of a Roll of paper has gone down to $2.00 per Roll. The new material cost is now $ 185 and the estimated over cost is $5.00 per hour. Even the workers wages went up from $ 20.00 per hour to $ 22.00 per hour.

Based on your Calculations % change in Multifactor Productivity (New - Old) is approximately:

Hint: Calculate the Output and input in $ Amt

a.41.4%

b.109.3%

c.8.5%

d.9.3%

e.15.6%

f.63.5%

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