Lillian Fok is president of Lakefront Manufacturing, a producer of bicycle tires. Fok makes 1,000 tires per day with the following resources.
Labor: 400 hours per day @ $12.50 per hour
Raw material: 20,000 pounds per day @ $1 per pound
Energy: $5,250 per day
Capital costs: $10,250 per day
a) Labor productivity per labor hour for these tires? = _____tires/labor hour ?(round your response to two decimal? places).
b) Multifactor productivity for these tires? =_____tires/dollar ?(round your response to four decimal? places).
c) The percent change in multifactor productivity if Fok can reduce the energy bill by $950 per day without cutting production or changing any other inputs? = ____%
(enter your response as a percentage rounded to two decimal? places).
d) The overall total input? (not reduction) for a 55?% increase in multifactor productivity? =_____(round to nearest? integer)
Note: calculate the new multifactor productivity to four decimal places before calculating the percentage change.