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David Upton is leader of Upton Manufacturing, a manufacture of Go-Kart tires. Upton makes 1,000 tires per day with the following resources:
Labor: 400 hours per day @ $12.50 per hour
Raw Material: 20,000 [pimds [er dau @ $1 per pound
Energy: $5,000 per day
Capital: $10,000 per day
a) Calculate the labor productivity per labor hour for these tires at Upton Manufacturing?b) Determine the multifactor productivity for these tires at Upton Manufacturing?c) What is the percent change in multifactor productivity if Upton can reduce the energy bill by $1,000 per day without cutting production or changing any other inputs?
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