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Suppose, the McAdams Performance Garage, Inc., modifies 6 0 0 0 0 0 cars annually. The director, Ben McAdams, is keen on obtaining a performance

Suppose, the McAdams Performance Garage, Inc., modifies 600000 cars annually. The director, Ben McAdams, is keen on obtaining a performance measure for assessment and future reference. He requested you to provide a multifactor measure of the previous years performance to serve as a benchmark for future comparison. You have collected the following data: Resource inputs
included labor, 12,000 hours; 600 enhancement kits; and energy, 120,000 kilowatt-hours. The average labor cost last year was 75 dollars per hour, kits cost $1,200 each, and energy costs were $4 per kilowatt-hour.
a) Determine the multifactor productivity?
b) If McAdams employs highly skilled labor, they can modify 700000 cars annually. By what amount
could labor costs increase without reducing total productivity in part a?

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