A furniture manufacturing company working on a 40-hour week makes 100 chairs. The sales price is €70 each, and the company has the following costs:

◆ Direct materials: €700

◆ Direct labor: €300

◆ Overhead: €500

a) Calculate the productivity of the company.

b) What will be the new productivity if the company decides to make 135 chairs per week?

c) If the company decides to improve productivity through materials costs reduction only, how much must these costs be reduced in order to achieve a 10% increase in total productivity?

Labor: 520 hours at $13 per hour Solvent: 100 gallons at $5 per gallon Machine rental: 20 days at $50 per day

a) What is the labor productivity per dollar?

b) What is the multifactor productivity?

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?