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One of the students from Op Management class starts a company that produces baseball bats. He/she is the owner and the only employer in the company. He/she works very hard for 10 hours a day to produce 50 bats a day. He/she thinks that by replacing the paint with some other paint, he/she can produce 60 bats per day. Cost of the wood used to produce one bat is $20; he/she spends $100 per day in necessary supplies (Like shipping of wood, stickers, etc.); electricity cost per day is $300; and he/she values the time at $10 per hour for his/her work.
1. What is his/her productivity in Number of Bats/hour?
2. What is his/her multi factor productivity with current paint and with new paint in Bats/dollar?
3. What is the percent change in productivity from current to new paint?
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