Identify the labor productivity per labor hour

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Reference no: EM131793891

Horatio Hartman runs Pilgrim Products where they make cages for chickens. Pilgrim makes 2,000 cages per day with the following resources: Capital: $20,000 per day; Energy: $10,000 per day; Raw material 20,000 pounds per day @ $3 per pound; Labor: 600 hours per day @$15.50 per hour. Identify the labor productivity per labor hour, the multifactor productivity, and the percent change in multifactor productivity if Pilgrim reduces material costs by $.50 per pound without making any other changes.

Reference no: EM131793891

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