Determine the multifactor productivity of the operations

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Reference no: EM133225991

Assignment:

Use the information provided below to answer all questions that follow. Thabs Performance Auto, Inc. specialises in the modification of cars. Mr Thabiso Mokwena, the managing director of Thabs Performance Auto wants to measure the performance of the business and has asked you to determine the multifactor productivity of the operations. You have assembled the following data: Last year This year Number of cars modified 700 750 Labour 10 000 hours @ R300 per hour 9 000 hours @ R350 per hour Suspension and engine modification kits 500 @R20 000 each 520 @R22 000 each Energy 100 000 kilowatt-hours @ R20 per kilowatt-hour 80 000 kilowatt-hours @ R25 per kilowatt-hour 2.1 If the multifactor productivity of Thabs Performance Auto's operations last year was 1.4, calculate how much was charged, on average, for each car modification.

Assuming the average price per modification has not changed, calculate the multifactor productivity of Thabs Performance Auto's operations this year (round off answer to 2 decimal places).

Determine the percentage change in the multifactor productivity of Thabs Performance Auto's operations this year compared to last year (round off answer to 2 decimal places).

Reference no: EM133225991

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