Lillian Fok is president of Lakefront Manufacturing, a producer of bicycle tires. Fok makes 1000 tires per day with the following resources:

Labor:

425 hours per day @ $12.50 per hour

Raw Material:

21,000 pounds per day @ $1.50 per pound

Energy:$5,250 per dayCapital:$10,250 per day

Part 2

a) Labor productivity per labor hour for these tires = 2.35 tires/labor hour (round your response to two decimal places).

Part 3

b) Multifactor productivity for these tires = 0.0191 tires/dollar (round your response to four decimal places).

Part 4

c) 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 = % enter your response here

(enter your response as a percentage rounded to two decimal places).

Note: calculate the new multifactor productivity to four decimal places before calculating the percentage change.

Please explain every part, especially part 4, thank you!!