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Q. David Upton is President of Upton Manufacturing, a producer of Go-Kart tires. Upton makes 1000tires per day with the subsequent resources:Labour: 400 hours @ $12.50 per hourRaw material: 20,000 pounds per day @ $1 per poundEnergy: $5,000 per dayCapital: $10,000 per day
(a) Illustrate what is the Labour productivity for these tires at Upton Manufacturing?
(b) Illustrate what is the multifactor productivity for these tires at Upton Manufacturing?
(c) Illustrate what is the percent change in multi-factor productivity if Upton can reduce the energy bill by $1,000 without cutting production or changing any other inputs?
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