After some study, the operations manager Darren Funk recommends $3$ options to improve the company's multifactor productivity:

Option $1$:increase the sales price by $16\%$

Option $2$ improve quality so that only $16\%$ are defective

Option $3$ reduce labor, materials, and overhead costs by $16\%$

For increasing the multifactor productivity level, out of the three options identified by Darren, the option that provides the most

improvement in productivity is