For the previous month, the Bichsel Lounge served 1,500 customers with very few complaints. Their labor cost was $3,000; material cost was $800; energy cost was $200; and building lease cost was $1,500. They were open 26 days during the month, and the lounge has 20 seats. They are open six hours per day, and the average customer stay is one hour. Required:
a. Calculate the single-factor productivities and the overall multiple-factor productivity. How could they improve the productivity?
b. Calculate the monthly capacity and the capacity utilization.