Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Use the information provided below to answer all questions that follow. Thabs Performance Auto, Inc. specialises in the modification of cars. Mr Thabiso Mokwena,
Use the information provided below to answer all questions that follow. Thabs Performance Auto, Inc. specialises in the modification of cars. Mr Thabiso Mokwena, the managing director of Thabs Performance Auto wants to measure the performance of the business and has asked you to determine the multifactor productivity of the operations. You have assembled the following data: This year Last year Number of cars modified 700 750 Labour 10 000 hours @R300 per hour 9000 hours @R350 per hour Suspension and engine modification kits 500 @R20 000 each 520 @R22 000 each Energy 2.1 100 000 kilowatt-hours @ R20 per 80 000 kilowatt-hours @ R25 per kilowatt-hour kilowatt-hour If the multifactor productivity of Thabs Performance Auto's operations last year was 1.4, calculate how much was charged, on average, for each car modification. (5 marks) 2.2 Assuming the average price per modification has not changed, calculate the multifactor productivity of Thabs Performance Auto's operations this year (round off answer to 2 decimal places). (4 marks) 2.3 Determine the percentage change in the multifactor productivity of Thabs Performance Auto's operations this year compared to last year (round off answer to 2 decimal places). (3 marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started