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Munson Performance Auto, Inc., modifies 375 autos per year. The manager, Adam Munson, is interested in obtaining a measure of overall performance.

He has asked you to provide him with a multifactor measure of last year's performance as a benchmark for future comparison. You have assembled the following data.

Resource inputs were labor, 10,000 hours; 500 suspension and engine modification kits; and energy, 100,000 kilowatt-hours.

Average labor cost last year was dollar20 per hour, kits cost dollar1,000 each, and energy costs were dollar3 per kilowatt-hour. What do you tell Mr. Munson?

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M92696049

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