(Answered) Rubber meets the road produces motorcycle tiresthey make

Management Studies

Rubber Meets the Road produces motorcycle tires.

They make 1200 tires per day with the following resources:

400 labor hours per day paying $12 per hour; 20,000 pounds per day of raw material at a cost of $1.50 per pound; $5,000 per day for electricity; and $10,250 per day for capital expense.

What is the multi-factor productivity for these tires?

The change in Productivity for the above problem if they are able to reduce the energy bill by $950 per day without cutting production?

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Operation Management, Management Studies

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