What is the labor productivity at alutech

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Reference no: EM131800573

AluTech, a light engineering company manufactures 1000 units per day with the following resources shown in the table:

 

Costs

Labor

400 hours @ €12.50 per hour

Raw Materials

20,000kg @ €1 per kg

Capital (€)

€10,000 per day

Energy

€5,000 per day

i) What is the labor productivity at AluTech?

ii) What is the multifactor productivity at AluTech?

iii) What is the percentage change in multifactor productivity if AluTech can reduce the energy bill by 50% per day, without cutting production or changing any other inputs?

Reference no: EM131800573

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