Answer to Question #298413 in Management for Xaxa

Question

A restaurant has 5 waiters who serve an average of 3000 customers per week. Each employee works 40 hours per week. The restaurant total wage is R10 000 and total overhead expenses are R15 000 per week.

Calculate the labour productivity

Single factor labour productivity

Multifactor productivity.

Show all your calculations

Answer 1

1. Labour productivity.

Labour productivity

$=$ Total Output$÷$ Total Input

$=3000÷40$

$=75$ customers per hour of work

2. Single factor productivity.

If labour productivity $=75$

Number of labourers$=5$

Single labour productivity $=$ labour productivity$÷$ Number of labourers.

$=75÷5 = 15$

$=15$

3. Multifactor labour productivity.

$=$ Output$÷$ Cost of expenses incurred.

$=3000÷(10,000+15,000)$

$=0.12$ customers served per R. of input.