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Speed and Quality Auto Inc., modifies 375 autos per year. The manager is interested in obtaining a measure of overall performance. He asked you

Speed and Quality Auto 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. What is the labour productivity? points) b. points) What is the multi-factor productivity? c. Assume that after receiving the first productivity- related 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 S1 per kw-hour. No more changes have been made. e. Considering all of these, calculate the new multi-factor productivity. (15 (15 points) d. Calculate the productivity growth rate in multi- factor productivity. (15 (15 points) Plot the MFP figures on a graph. (15 points) Explain the scenario briefly considering each f. section.

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