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Mr. Achebe, who runs his photocopy business working 8 hours per day, processes 100 scripts in a day. He estimates his labor cost to be
Mr. Achebe, who runs his photocopy business working 8 hours per day, processes 100 scripts in a day. He estimates his labor cost to be 9 per hour. Also, he has estimated that the total material cost for each script is 2 while the daily expenses are 28. Calculate the multifactor productivity. In an effort to increase the rate of the photocopy process to 150 scripts, he decides to change the quality of ink, thereby raising the material cost to 2.5 per day. Is the new productivity better than before? If Mr. Achebe would like to increase the photocopy process to 150 scripts without sacrificing the initial multifactor productivity, by what amount has the material cost to be increased
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