The following data are given for a caterer in Washington, DC:
Last Year This year
Total sales: $1,800,000 $1,840,000
Total cost of materials
(produce & other food items): $450,000 $480,000
Labor hours used: 24,000 hours 23,000 hours
Cost of labor (including fringe): $16.00 per hour $16.50 per hour
Energy & other overhead costs: $165,000 $172,000
Determine multi-factor productivity for labor & materials for each year.
Determine the total factor productivity for each year.
The company’s goal is to improve its total productivity performance by 6% each successive year. Has it achieved its goal this year compared to the previous year? (Please show your work