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Mack's guitar fabrication shop produces low cost, highly durable guitars for beginners. Typically, out of the 1 0 0 guitars that begin production each month,

Mack's guitar fabrication shop produces low cost, highly durable guitars for beginners. Typically, out of the 100 guitars that begin production each month, only 80 percent are considered good enough to sell. The other 20 percent are scrapped due to quality problems that are identified after they have completed the production process. Each guitar sells for $250.
Because some of the production process is automated, each guitar only requires 10 labor hours. Each employee works an average 160 hours per month. Labor is paid at $10? hour, materials cost is $40? guitar, and overhead is $8,600. After some study, the operations manager recommends three options to in prove the company's multifactor productivity: Improve quality sctthat only 10 percent are defective.
What is the multifactor productivity of the option? Round to four decimal places. [Note: Productivity =(output)/(input). Productivity growth =(current prod. - previous prod.)/(previous prod.)]
1.7250
0.9956
1.9417
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