Question: . Basic Lumber Products ( BLP ) produces apple crates. BLP manufactures 2 4 0 crates per 1 0 0 logs with its current machinery,

. Basic Lumber Products (BLP) produces apple crates. BLP manufactures 240 crates per 100 logs with its
current machinery, which operates 8 hours per day. It uses 100 logs per day, and each log requires three
labor hours to process. BLP has found a source of better quality logs. BLP believes it can increase production
to 260 crates per 100 logs, but the labor hours required will increase by eight hours per day. The cost of
labor is $12. The cost of the current logs is $10, and the higher quality logs cost $12. Machinery costs are $3
per operating hour. What is the multifactor productivity for the current production process and for the
higher quality logs? Which process is more efficient? Why?

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