. 1.16 An air-conditioner factory makes three different types of air-conditioners: the ceiling type, the cassette type and the wall mounted type. Weekly sales of each type are 2, 4 and 6 pieces, at a price of 350, 450, and 500 each, respectively. The ceiling type can be assembled in 1.5 hours, the cassette type in 1 hour and the wall-mounted type in 45 minutes. Labour cost is 40 per hour and the current factory's multi factor productivity is 2.2. a) Calculate the average cost per air-conditioner based on cur rent multifactor productivity b) Calculate labor productivity in euro per hour) for each type of air-condition c) Where the company should focus its efforts, based (i) on the labor productivity, and (ii) on average cost? ... 1.17 As part of a study for the Department of Labor Statistics, you are assigned the task of evaluating the improve ment in productivity of small businesses. Data for one of the small businesses you are to evaluate are shown at right. The data are the monthly average of last year and the monthly average this year. Determine the multifactor productivity with dollars as the common denominator for: a) Last year. b) This year. c) Then determine the percent change in productivity for the monthly average last year versus the monthly average this year on a multifactor basis. Labor: S8 per hour Capital: 0.83% per month of investment Energy: $0.60 per BTU Production (dozen) Labor hours) Capital investment (5) Energy BTU) LAST YEAR 1,500 350 15,000 3,000 THIS YEAR 1,500 325 18,000 2,700