Question: A commodity analyst has made available the following information about the cobalt production in the Democratic Republic of Congo ( DRC ) in 2 0

A commodity analyst has made available the following information about the cobalt production in the Democratic Republic of Congo (DRC) in 2021.

The country produced 120 000 tonnes of cobalt with the following resources:

Labour: 1 200 000 hours @ R250.00 per hour

Energy: R8 000 000 per month

Capital costs: R160 000 000 for the year

Expenditure on suppliers and Supplies: R120 000 000 for the year

Required:

2.1. Calculate the labour productivity per labour-hour in terms of tonnes of cobalt produced in the DRC during the 2021 financial year (round off answer to one decimal place).

2.2. In relations to cobalt production in the DRC during the 2021 financial year, determine the multifactor productivity. Assume an average selling price of R60 000 per tonne (round off the answer to two decimal places).

2.3. Assuming that the capital costs and the energy bill in relations to cobalt production were reduced by 50% and 30% respectively in 2022 without cutting production or changing any other input, determine the percent change in multifactor productivity? (Assume an  average selling price of R55 000 per tonne of cobalt in 2022).

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