Question

1.9 Lillian Fok is president of Lakefront Manufacturing, a producer of bicycle tires. Fok makes 1,000 tires per day with the following resources.
Labor: 400 hours per day @ $12.50 per hour

Raw material: 20,000 pounds per day @ $1 per pound

Energy: $5,000 per day

Capital costs: $10,000 per day

a) What is the labor productivity per labor-hour for these tires at Lakefront Manufacturing?

b) What is the multifactor productivity for these tires at Lakefront Manufacturing?

c) What is 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?

Answer 1

Base on the question which ask to compute the following ask in the following question and in my further computation, the answer would be the following.
A. 2.5 tire labors per labor hour
B. 0.025 tires per dollar input
C. 12%
I hope you are satisfied with my answer and feel free to ask for more if you have question and further clarification about the said question