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Jack Pothier is president of Pothier Tire Manufacturing, a producer of vehicle tires. Pothier Tire Manufacturing makes 1 7 0 0 tires per day with

Jack Pothier is president of Pothier Tire Manufacturing, a producer of vehicle tires. Pothier Tire
Manufacturing makes 1700 tires per day with the following resources: (10 points)
Labour: 400 hours per day @ $14.50 per hour
Raw material: 20,000 pounds per day @ $1.5 per pound
Energy: $4000 per day
Capital costs: $10,000 per day
a) What is the labour productivity per dollar for these tires at Pothier Tire Manufacturing?
(2 points)
b) What is the labour productivity per labour hour for these tires at Pothier Tire
Manufacturing? (2 points)
c) What is the multifactor productivity for these tires at Pothier Tire Manufacturing? (2 points)
d) What is the percentage change in multifactor productivity if Pothier Tire Manufacturing can
reduce the energy bill by $1500 per day without cutting production or changing any other
inputs? (4 points)

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