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 325 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, 10,500 hours; 500 suspension and engine modification kits; and energy, 110,000 kilowatt-hours. Average labor cost last year was $30 per hour, kits cost $1,000 each, and energy costs were $3 per kilowatt-hour. What do you tell Mr. Munson?
Multifactor productivity is calculated by combining the input units as shown here:
Productivity =OutputLabor+Material+Energy+Capital+Miscellaneous.
To aid in the computation of multifactor productivity, the individual inputs (the denominator) can be expressed in dollars and summed as shown below: hours
 Munson Performance Auto, Inc., modifies 325 autos per year. The manager,

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