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Lillian Fok is president of Lakefront? Manufacturing, a producer of bicycle tires. Fok makes 1,200 tires per day with the following? resources:
?Labor: 400 hours per day ?@? $12.00 per hour
Raw? Material: 21,000 pounds per day? @ ?$1.50 per pound
?Energy: $5,000 per day
?Capital: 10,250 per day
?a) Labor productivity per labor hour for these tires? = _____ ?tires/labor hour ?(round your response to two decimal? places).
b) Multifactor productivity for these tires? = ____?tires/dollar ?(round your response to four decimal? places).
c) The percent change in multifactor productivity if Fok can reduce the energy bill by ?$1,000 per day without cutting production or changing any other inputs? = ____?% ?(enter your response as a percentage rounded to two decimal? places).
Note: calculate the new multifactor productivity to four decimal places before calculating the percentage change.
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