Answer:
The correct answer is 6.48.
Explanation:
According to the scenario, the given data are as follows:
Total number of employees = 3
Pay rate = $16 per hour per employee
One time fees = $70
Average identifies customer = 3,800
Conversion rate = 10%
So, we can calculate the multifactor productivity by using following formula:
Multifactor productivity = Total earning ÷ Total expense
Where, Total earning = 3,800 × 3 × $70 × 0.10 = $79,800
and Total Expense = 3 × 40 × 16 + $1,400 + $9,000 = $12,320
By putting the value we get,
Multifactor productivity = $79,800 ÷ $12,320
= 6.48
Hence, the multifactor productivity for this operation is 6.48.