7. Thomas Cope, located in Bolton, England, is a manufac kitchens. The firm works 20 days a month, and each turer of stainless steel exhaust hoods used in industrial costs down, Thomas Cope employs labor with limited experience. This causes quality issues, and every day hood sells for 125. Labor is paid at 15/hour, materi. als cost per exhaust hood is 40, and overhead cost is 10 percent of the production is scrapped. Each exhaust 3,500. The firm currently has 250 employees. a. Calculate the labor and multifactor productivity ratios. b. To improve the firm's multifactor productivity, Thomas Cope has three choices 1) increase 201 sales by reducing the sales price by 10 percent, 2) percent improve quality by hiring skilled labor at 20 per hour resulting in no defects, or 3) reduce material costs by 10 percent. Which option has the greatest impact on the multifactor productivity measure?