Green Initiative

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The three person crew worked their way through the neighborhood, mowing lawns, edging. apply 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. 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 A: Price List: SERVICE MATERIAL $2 LABOR PRICE Mow lawn 1 hr $75 Edge Fertilizer treatment Weed prevention treatment Multiple services $1 25 $20 $45 25 $120 $25 25 $80 5% discount times the number of services Table B: Orders Processed # Customers SERVICE 6 Mow lawn & edge Mow lawn, Edge, and fertilize Mow lawn, Edge, and weed prevention treatment Mow lawn& fertilize 2 2 a. What is their multifactor productivity for these orders? (5 points) b. Which of the service combinations they are providing is their most productive from a multifactor perspective? (5 points) c. What is their labor productivity for the same mix of orders? (5 points) 3