Question: 3 . Multifactor Productivity ( 5 marks ) [ CLR 1 ] Road racing bikes have special seats that are flexible with minimum contact with

3. Multifactor Productivity (5 marks)[CLR 1]
Road racing bikes have special seats that are flexible with minimum contact with cyclists. These seats are called toupe saddles. Roscoe Specialty Equipment makes 100 of these seats per day with the following resources.
Labor: 40 hours per day @ $15.00 per hour
Raw material: 20 kilograms per day @ $1.00 per kg
Energy: $200 per day
Capital costs: $500 per day C) What is the % change in multifactor productivity if Roscoe can reduce the energy bill by $150 per day without cutting production or changing any other inputs?

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