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?