Question $3.$

A timber company has decided to compare the productivity from a multifactor $($total factor productivity$)$ perspective of two schemes. The current scheme produces $240$ crates per day. The new scheme will produce $260$ crates per day. The total labour$-$hours are now $300$ per day and will increase to $308$ per day with a new scheme. The average pay is $10$ per hour.

It has determined the labour, capital, energy, and material usage and decided to use Euro as the common denominator. The capital and energy costs will remain constant at $350$ and $150$ per day, respectively. Material costs for $100$ logs per day are $1,000$ and will remain the same in the new scheme.

a$)$ Determine the productivity of both schemes.

b$)$ Determine the $\%$ change in productivity

Question $4$

A company makes wooden boxes in which to ship motorcycles. The three employees invest a total of $40$ hours per day making the $120$ boxes.

a$)$ What is the productivity?

b$)$ The employees have discussed redesigning the process to improve efficiency. If they can increase the rate to $125$ per day, what will be their new productivity?

c$)$ What will be their unit increase in productivity per hour?

d$)$ What will be their percentage change in productivity?