Pak Andi is a director of a cake factory in the Bekasi area. To produce 900 cakes per day it takes the following things: Labor 300 hours per day @ $ 96 per hour Raw material 3 tons per day @ $ 2 per kg Energy  $ 10,000 per day  Capital cost $ 5,000 per day a. What is the labor productivity per labor-hour for the production of cakes at the factory? b. What is the multifactor productivity for cake production at the factory? c. If Mr. Andi wants to increase his production to 1,500 cakes per day without changing other variables, what is the productivity now?

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Pak Andi is a director of a cake factory in the Bekasi area. To produce 900 cakes per day it takes the following things:

Labor 300 hours per day @ $ 96 per hour
Raw material 3 tons per day @ $ 2 per kg
Energy  $ 10,000 per day 
Capital cost $ 5,000 per day

a. What is the labor productivity per labor-hour for the production of cakes at the factory?
b. What is the multifactor productivity for cake production at the factory?
c. If Mr. Andi wants to increase his production to 1,500 cakes per day without changing
other variables, what is the productivity now?

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