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Question
The three person crew worked their way through the neighborhood, mowing lawns, edging, applying fertilizer and weed treatments where necessary and collecting all the clippings for use as mulch as part of their new green initiative. Their pricing scheme appears in Table A and the mix of orders and service costs appear in Table B:
a. What is their multifactor productivity for these orders in the prestigious Edmond Oaks neighborhood?
b. Which of the service combinations provided by them is the most productive service combination from a multifactor 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 of $10 per hour, and overhead is charged at 120% (or 1.2 times) labor costs. For a customer that gets both mowing and edging, their $95 bill would be discounted for two services times 5% for a total of 10% off the $95 straight charge for a cost of $85.50. A customer receiving three services would get a 15% discount off their service bill. Labor hours shown in Table A are total hours for the three-person 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 |
Answer
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