Wilson Fabricating Company is a small metal parts company (25 employees) that was established in 1990 and has gradually grown to its present size. Arthur Wilson, founder of the company, is progressive and anxious to improve the company's productivity and establish strong basis fro company growth. In reviewing financial figures for the past weeks, he uncovered the following data: Plant sales: $80000 Plant input: Labor Costs: $20000 ($5 per unit labor) Material Costs: $12000 ($20 per part) Power Costs: $4000 ($0.08 per unit) Capital: $16000 ($0.10 per unit) Other $8000 ($4 per unit) Total input: $60,000 So given P=O/I- -> P=80000/60000=1.33 Questions: 1. If unit labor costs are $10 per hour instead of $5, is it possible to increase productivity to 1.4 if labor hours are reduced 15%, capital increases $1000, and remaining items are unchanged? 2. If only energy costs are reduced by 50%, what improvement in productivity can we expect? 3. What in your opinion are other considerations you yourself might consider to increase productivity if you were manager of this company