Question: Struggling with this question keep getting the multi factor productivity calculations confused please help 1. [Chapter 1: 10 points]. A local company that produces seeds

Struggling with this question keep getting the multi factor productivity calculations confused please help

Struggling with this question keep getting the multi factor productivity calculations confused

1. [Chapter 1: 10 points]. A local company that produces seeds for agriculture uses productivity indices to measure the efficiency of certain segments of its production process. In particular, it measures the productivity of raw materials, labour, capital, energy and overall productivity. At the end of 2018, the manufacturing general manager reported that the company needed a 40% increase in overall productivity (i.e., multi-factor productivity) over 2015 base year levels by the end of 2020 to survive the changing competitive marketplace. The following table provides inputs and output data for 2015 and 2020. Assume each employee works for 1,820 hours per year. Year Output (kg) Workers Material (kg) Capital ($) Energy (Million (number) Btu) 2015 600,000 60 45,000 50,000 25,000 2020 655,000 55 48,000 75,000 20,000 Price $20/kg $15 per hour $10/kg $0.50/million Btu a) Calculate the multi-factor productivity (in kg per dollar) of the seed production process for 2015 and 2020. Calculate the percentage change in the multi-factor productivity? Increase or decrease? Has the general manager reached its goal of a 40% increase in overall productivity growth? If not, by how much should the number of workers be reduced in 2020 to attain the 40% productivity improvement target

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