Student tuition at University of Nabraska is $ 100 per semester credit hours. Th
ID: 358683 • Letter: S
Question
Student tuition at University of Nabraska is $ 100 per semester credit hours. The states supplement school revenue by matching student tuition, dollars per dollars. Average class size for typical three credit course is 50 students. Labor costs are $4000 per class, material costs are $20 per student, and overhead cost are $25,000 per class.
Find: a) What is the multifactor productivity ratio? b) If instructors work an average, what is the labor productivity ratio? (Keep in mind that professor delivering the lecture work 14 hours per week the semester last for 16 weeks)
Please provide solution
Explanation / Answer
a) Output = 50 students x 3 credit hours x ($ 100 tuition + $ 100 state support) = $ 30,000 per class
Input cost = labor cost + material cost + overhead cost = 4000 + 50*20 + 25000 = $ 30,000
Multifactor productivity = Output / Input = 30000/30000 = 1
b) Labor input = 14*16 = 224 hours
Labor productivity = 30000/224 = 133.93 $ / hr