As part of a study for the Department of Labor Statistics, you are assigned the task of evaluating the

As part of a study for the Department of Labor Statistics, you are assigned the task of evaluating the improvement in productivity of small businesses. Data for one of the small businesses you are to evaluate is shown below. The data are the monthly average of last year and the monthly average this year.  Determine the multifactor productivity using the following costs: 

• Labor:  

$8 per hour;

• Capital:   0.83% per month of investment;

• Energy:   $.60 per BTU.  

  Monthly Average 

 Last Year    

     
   
              
                                  

This Year                                                  

Production (dozen)                         1,500                                                                    

    1,500

Labor (hours)                                         350                                                                             325

Capital Investment ($)                 15,000                                                               18,000

Energy (BTU)                                     3,000                                                                     
     2,750