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solve all quistion Question: The case of Fina Auto Speed and Quality Aute Inc., modifies 375 autos per year. The manager is interested in obtaining
solve all quistion
Question: The case of Fina Auto Speed and Quality Aute Inc., modifies 375 autos per year. The manager is interested in obtaining a measure of overall performance. He asked you to provide him with productivity measures of last year's performance as a benchmark for future comparison. You have assembled the following data: resource inputs were labour, 10,000 hours; 500 suspension and engine modification kits; and energy 100,000 kw-hours. Average labour cost last year was 2000 -cent per hour, kits cost $1000 each, and energy costs were $3 per kw-hour. a. What is the labour productivity? (15 points) b. What is the multi-factor productivity? (15 points) c. Assume that after receiving the first productivityrelated report, the manager has increased the modified auto number to 420 . Also, he has purchased a new machine by investing $1000 which in turn reduces the energy costs to \$1 per kw-hour. No more changes have been made. Considering all of these, calculate the new multi-factor productivity. (15 points) d. Calculate the productivity growth rate in multifactor productivity. (15 points) e. Plot the MFP figures on a graph. (15 points) f. Explain the scenario briefly considering each section. (25 points) Step by Step Solution
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