Quick-start, Inc. produces fire starters for starting charcoal grills. The fire starters are made from wood chips and paraffin. If there is not enough paraffin, the fire starters are more difficult to light; if there is too much paraffin, the fire starters burn too quickly and don€™t light the charcoal. Management are concerned about productivity and have collected the following information.

 

Required:

A. Calculate partial productivity measures.

B. Calculate the total factor productivity measure.

C. Analyze Quick-start, Inc.€™s productivity from month 1 to month 2.

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Month 1 Cost per unit kg kg Month 2 Wood chips Paraffin Labour 500 650 $ 3.50 100 120 $10.00 280 hrs 240 5400 $15.00 Total fire starters 7200 है