1. Innocent Zuma, an entrepreneur in the footwear business based in Umlazi near Durban, has decided to look at his productivity from a multi-factor (total-factor productivity) perspective. He has determined his labor, capital, energy, and material usage and decided to use dollars as the common denominator. His total labor hours, which are currently 300 per day, will increase to 308 per day. His capital and energy costs will remain constant at R350 and R150 per day, respectively. Material costs for the 100 logs per day are R1,000 and will remain the same because he pays an average of R10 per hour (with fringes).
2. 
   Determine Innocent Zuma’s productivity increase by performing a multi-factor analysis. (10 Marks)