a- Lillian Fok is president of Lakefront Manufacturing, a producer of bicycle tires. Fok makes 1,000 tires per day with the following resources:

Labor: 400 hrs/ per day @ 12.00 per hour

raw material : 21,000 pounds per day @ $1.50 per pound

Energy: $5,250 per day

What is the labor productivity per labor hour for these tires at Lakefront Manufacturing?

What is the multifactor productivity for these tires at Lakefront Manufacturing?

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?

Capital $10,000 per day

b - Charles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent product and excellent location, demand has increased by 35% in the last year. On far too many occasions, customers have not been able to purchase the bread of their choice. Because of the size of the store, no new ovens can be added. At a staff meeting, one employee suggested ways to load the ovens differently so that more loaves of bread can be baked at one time. This new process will require that the ovens be loaded by hand, requiring additional manpower. This is the only production change that will be made in order to meet the increased demand. The bakery currently makes 1,600 loaves per month. Employees are paid $8 per hour. In addition to the labor cost, Charles also has a constant utility cost per month of $650 and a per loaf ingredient cost of $0.50.

Current multifactor productivity for 640 work hours per month =__?___loaves/dollar (round your response to three decimal places).

Labour Productivity = output / labour hours used

??????????

Labour hour used = ??

Labour needed to meet the demand = labour hours needed / output per person per hour

= ?????

Demand in the previous year = ????????units

Labour hours are needed for productivity of ?????

= ???????????????

Labour needed = ????

percentage???