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David upton is president of upton manufacturing ' a producer of Go kart tires. Upton makes 1200 tires per day with the following resources.
Labour 400hours per d..y@$12.00 per hour
Raw material 20,000 pounds per d..y@$1.00 per pound
Energy $5,250 per day
Capital $10,000per day
A. Labour productivity per labour hour for thess tires = tires /labour hour( round your response to two desimal places.
B. Multifactor productivity for these tires=__ tires/ dollar
C the percent change in multifactor productivity if upton can reduce the energy bill by $ 1,000 per day without cutting or changing production or changing any other inputs =__%( enter your response as a percentage roundedto two decimal places.
Note. Calculate the new multifactor productivity to four desimal places before calculating the percentage change.
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