1. A company in Mexico makes bicycle wheels.They make 12,000 per day with the following resources:
   1. Capital costs and overhead costs: $14,000 per day
   2. Labor: 600 hours per day at $6.50 per hour
   3. Raw Material: 1,000 kilograms of rubber per day at $1.1 per kilogram and 1,000 kilograms of aluminum per day at $2.2 per kilogram
   4. Energy: $3300 per day

1. What is the labor productivity per labor-hour.

1. What is the multifactor productivity for these bicycle wheels?
2. If energy costs can be reduced by $1000 per day without any other changes or losses in productivity what is the percent change in multifactor productivity?

What would be the single most impactful change which to the cost of these resources that would improve your calculated multifactor productivity. Explain your answer with a numerical example