a) What is the labor productivity per labor-hour for these ties at Upton Manufacturing? b) What is the multifactor productivity for these tires at Upton Manufacturing? c) What is the percent change in multifactor productivity if Upton can reduce the energy bill by $1,000 per day without cutting pro- duction or changing any other inputs? PX

Marketing
20th Edition
ISBN:9780357033791
Author:Pride, William M
Publisher:Pride, William M
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 6DRQ
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1.9
David Upton is president of Upton Manufacturing, a
producer of Go-Kart tires. Upton makes 1,000 tires per day with the
following resources:
400 hours per day @ $12.50 per hour
20,000 pounds per day @ $1 per pound
$5,000 per day
$10,000 per đay
Labor:
Raw material:
Energy:
Capital costs:
a) What is the labor productivity per labor-hour for these tires at
Upton Manufacturing?
b) What is the multifactor productivity for these tires at Upton
Manufacturing?
c) What is the percent change in multifactor productivity if Upton
can reduce the energy bill by $1,000 per day without cutting pro-
duction cr changing any other inputs? K
Transcribed Image Text:1.9 David Upton is president of Upton Manufacturing, a producer of Go-Kart tires. Upton makes 1,000 tires per day with the following resources: 400 hours per day @ $12.50 per hour 20,000 pounds per day @ $1 per pound $5,000 per day $10,000 per đay Labor: Raw material: Energy: Capital costs: a) What is the labor productivity per labor-hour for these tires at Upton Manufacturing? b) What is the multifactor productivity for these tires at Upton Manufacturing? c) What is the percent change in multifactor productivity if Upton can reduce the energy bill by $1,000 per day without cutting pro- duction cr changing any other inputs? K
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