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1. Labour Hours (5 marks) Metal manufacturers design and make metal frame boats. Last year, the company produced a staggering 120,000 frames. Each employee worked 140 hours per month. If the labor productivity at the plant is 2.5 per labor hour, how many employees are employed at the shop?
2. Multifactor Productivity (5 marks) Cineplex Omega makes 100 of these seats per day with the following resources. Labor: 40 hours per day @ $15.00 per hour Raw material: 20 kilograms per day @ $1.00 per kg Energy: $200 per day Capital costs: $500 per day
A) What is the labor productivity per labor hour for these seats?
B) What is the multifactor productivity for these seats?
C) What is the % change in multifactor productivity if Cineplex can reduce the energy bill by $150 per day without cutting production or changing any other inputs?
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