Question: Munson Performance Auto, Inc., modifies 3 2 5 autos per year. The manager, Adam Munson, is interested in obtaining a measure of overall performance. He
Munson Performance Auto, Inc., modifies 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, hours; suspension and engine modification kits; and energy, kilowatthours. Average labor cost last year was $ per hour, kits cost $ each, and energy costs were $ per kilowatthour. What do you tell Mr Munson?
Multifactor productivity is calculated by combining the input units as shown here:
Productivity
To aid in the computation of multifactor productivity, the individual inputs the denominator can be expressed in dollars and summed as shown below: hours
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