Q. David Upton is president of Upton Manufacturing, a producer of Go-Kart tires. Upton makes 1,000 tires per day with the subsequent resources:
Labour: 400 hours per day @ $12.50 per hour
Raw Material: 20,000 @ $1 per pound
Energy: Â Â $5,000 per day
Capital: Â Â $10,000 per day

a) Illustrate what is the labour productivity per labour hour 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 multifactor productivity if Upton can reduce the energy bill by $1,000 per day without cutting production or changing any other inputs?