Usher Dash is president of Dash Manufacturing, a producer of Go-Kart tires. Dash makes 870,000 tires per day with the following resources: Labor 1670 hours per day @ 225 per hour Raw Material 900,000 pounds per day @ Rs.10 per pound Energy Rs.87,000 per day Capital Rs.560,000 per day a) What is the labor productivity per labor hour for these tires? b) What is the multifactor productivity for these tires? c) What is the percentage change in multifactor productivity if Upton can reduce the energy bill by Rs.13,000 per day without cutting production or changing any other input? What is the capital productivity per tire per rupee?

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Usher Dash is president of Dash Manufacturing, a producer of Go-Kart tires. Dash makes 870,000 tires per day with the following resources:
Labor 1670 hours per day @ 225 per hour
Raw Material 900,000 pounds per day @ Rs.10 per pound
Energy Rs.87,000 per day
Capital Rs.560,000 per day

a) What is the labor productivity per labor hour for these tires?
b) What is the multifactor productivity for these tires?
c) What is the percentage change in multifactor productivity if Upton can reduce the energy bill by Rs.13,000 per day without cutting production or changing any other input?
What is the capital productivity per tire per rupee?

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