Last year acme toys forty 40 production employees produced, Finance Basics

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Last year acme toys forty 40 production employees produced

Question: Last year ACME Toys' forty (40) production employees produced 12000 drones at the direct manufacturing cost (direct labor + direct materials + factory overhead) of $3,000,000. The direct labor costs were 30% and the direct material costs were 60% of this cost. What level of multifactor productivity improvement should ACME Toys Inc. have this year to meet its 25% increase in the product demand, assuming that its factory overhead costs remain constant?

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