The three person crew worked their way throughthe neighborhood, mowing lawns, edging, apply fertilizer and weed treatments where necessary and collecting all the clippings for use as mulches part of their new green initiative. Their pricing scheme appears in Table A and themix of orders and service costs appear inTableB:
a. What is their multifactor productivity for these orders in the prestigious Edmond Oaks neighborhood?
b. Which of the service combinations they are providing is their most productive from a multifrictor perspective?
c. What is their labor productivity for the same mix of orders?
Table A: Price List:
|
SERVICE
|
PRICE
|
LABOR
|
MATERIAL
|
|
Mow lawn
|
$75
|
1 hr
|
$2
|
|
Edge
|
$20
|
.25
|
$1
|
|
Fertilizer treatment
|
$120
|
.25
|
$45
|
|
Weed prevention treatment
|
$80
|
.25
|
$25
|
|
Multiple services
|
5% discount times the number of services
|
|
|
Workers are paid at a rate o S10 perhour, and overhead is charged at 120% (or 1.2 times) labor cost. For a customer that gets both mowing and edging, their $95 billwouldbe discounted for two services times 5%for a total of 10%off the $95 straight charge fora cost of $85.50. A custornerreceiving three services would get a 15% discount off their service bilL Labor hours shown in Table A are total hours for the three-p arson crew.
Table B: Orders Processed
|
SERVICE
|
# Customers
|
|
Mow lawn & edge
|
6
|
|
Mow lawn, Edge, and fertilize
|
3
|
|
Mow lawn, Edge, and weed prevention treatment
|
2
|
|
Mow lawn & fertilize
|
2
|