Question: Munson Performance Auto Inc modifies 375 autos per year The
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 $ 20 per hour, kits cost $ 1,000 each, and energy costs were $ 3 per kilowatt- hour. What do you tell Mr. Munson?
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