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

d) If the company repeats the same exercise as in part (c), but through labor costs reduction, how much must these costs be reduced in order to achieve a 10% increase in total productivity?lop4