MGMT 3450 UVU TEST 1 | COMPREHENSIVE PRACTICE QUESTIONS AND ANSWERS | STUDY
GUIDE 2026
Labor Productivity - ANS ✔✔Unit Produced / Labor
Equipment is the same as - ANS ✔✔Machine Cost
Hourly Labor Cost Formula: - ANS ✔✔Hourly Wage per Worker * Total Used Workers
Multifactor Productivity Measure - ANS ✔✔Units per Hour / (Labor + Equipment)
Labor Productivity Growth - ANS ✔✔((Current Labor Productivity - Previous Labor
Productivity) / Previous Labor Productivity) * 100
Multifactor Productivity Growth - ANS ✔✔((Current Multifactor Productivity Measure - Previous
Multifactor Productivity Measure) / Previous Multifactor Productivity Measure) * 100
A company that makes shopping carts for supermarkets and other stores recently purchased
some new equipment that reduces the labor content of the jobs needed to produce the
shopping carts. Prior to buying the new equipment, the company used 6 workers, who together
produced an average of 90 carts per hour. Workers receive $14 per hour, and machine cost was
$40 per hour. With the new equipment, it was possible to transfer one of the workers to
another department, and equipment cost increased by $10 per hour, while output increased by
5 carts per hour.
a. Compute labor productivity under each system. Use carts per worker per hour as the
measure of labor productivity.
Before ___________ carts per worker per hour
After ___________ carts per worker per hour
, b. Compute the multifactor productivity under each system. Use carts per dollar cost (labor plus
equipment) as the measure.
Before __________ carts/dollar cost
After - ANS ✔✔a. Compute labor productivity under each system. Use carts per worker per hour
as the measure of labor productivity.
Before (15) carts per worker per hour
After (19) carts per worker per hour
b. Compute the multifactor productivity under each system. Use carts per dollar cost (labor plus
equipment) as the measure.
Before (.726) carts/dollar cost
After (.792) carts/ dollar cost
c. Comment on the changes in productivity according to the two measures.
Labor productivity "Increased" by (26.67)%
Multifactor productivity "Increased" by (9.09)%
"Σ" means what? - ANS ✔✔A quick way of writing addition
"i" means what? - ANS ✔✔√-1
"i^2" means what? - ANS ✔✔-1
National Scan, Inc., sells radio frequency inventory tags. Monthly sales for a seven-month period
were as follows:
GUIDE 2026
Labor Productivity - ANS ✔✔Unit Produced / Labor
Equipment is the same as - ANS ✔✔Machine Cost
Hourly Labor Cost Formula: - ANS ✔✔Hourly Wage per Worker * Total Used Workers
Multifactor Productivity Measure - ANS ✔✔Units per Hour / (Labor + Equipment)
Labor Productivity Growth - ANS ✔✔((Current Labor Productivity - Previous Labor
Productivity) / Previous Labor Productivity) * 100
Multifactor Productivity Growth - ANS ✔✔((Current Multifactor Productivity Measure - Previous
Multifactor Productivity Measure) / Previous Multifactor Productivity Measure) * 100
A company that makes shopping carts for supermarkets and other stores recently purchased
some new equipment that reduces the labor content of the jobs needed to produce the
shopping carts. Prior to buying the new equipment, the company used 6 workers, who together
produced an average of 90 carts per hour. Workers receive $14 per hour, and machine cost was
$40 per hour. With the new equipment, it was possible to transfer one of the workers to
another department, and equipment cost increased by $10 per hour, while output increased by
5 carts per hour.
a. Compute labor productivity under each system. Use carts per worker per hour as the
measure of labor productivity.
Before ___________ carts per worker per hour
After ___________ carts per worker per hour
, b. Compute the multifactor productivity under each system. Use carts per dollar cost (labor plus
equipment) as the measure.
Before __________ carts/dollar cost
After - ANS ✔✔a. Compute labor productivity under each system. Use carts per worker per hour
as the measure of labor productivity.
Before (15) carts per worker per hour
After (19) carts per worker per hour
b. Compute the multifactor productivity under each system. Use carts per dollar cost (labor plus
equipment) as the measure.
Before (.726) carts/dollar cost
After (.792) carts/ dollar cost
c. Comment on the changes in productivity according to the two measures.
Labor productivity "Increased" by (26.67)%
Multifactor productivity "Increased" by (9.09)%
"Σ" means what? - ANS ✔✔A quick way of writing addition
"i" means what? - ANS ✔✔√-1
"i^2" means what? - ANS ✔✔-1
National Scan, Inc., sells radio frequency inventory tags. Monthly sales for a seven-month period
were as follows:
