Question

Munson Performance​ Auto, Inc., modifies 375 autos per year. The​ manager, Adam​ Munson, is interested in obtaining a measure of overall performance. He has asked you to provide him with a multifactor measure of last​ year's performance as a benchmark for future comparison.  You have assembled the following data. Resource inputs​ were: labor, 10500 ​hours; 500 suspension and engine modification​ kits; and​ energy, 100000 ​kilowatt-hours. Average labor cost last year was ​$25 per​ hour, kits cost ​$1,000 ​each, and energy costs were ​$5 per​ kilowatt-hour. The overall performance at Munson Performance​ Auto, Inc.​ = ​autos/dollar of input ​(round your response to six decimal​ places).

Answer 1

Answer:

overall performance 0.000297

Explanation:

cost of inputs:

labor 10,500 hours x  25 each            =                 262,500

suspension and engine 500 kits x 1,000 each =  500,000

energy 100,000 kilowatt-hous x 5 each =             500,000

              total input resource cost                       1,262,500

performance:

375 / 1,262,500= 0.00029703

rounding to 6 decimal places: 0.000297