Question: Study the information provided below and answer the following questions. INFORMATION A tiles manufacturing company, MTD Enterprises, currently produces 40000 units of polished porcelain foor

 Study the information provided below and answer the following questions. INFORMATION

Study the information provided below and answer the following questions. INFORMATION A tiles manufacturing company, MTD Enterprises, currently produces 40000 units of polished porcelain foor tiles (6001200mm) every week using the following resources: MTD Enterprises sells each unit of the tiled for R350. REQUIRED: Using the information provided above, answer the following questions independently (round off all answers to two decimal places): 21 Calculate the multifactor productivity of the company. (4 marks) 2.2 Calculate the new multifactor productivity if the company decides to make 50000 units of the tiles per week with the expectation that the overheads will increase by 50% (Hint: calculate the direct material cost per unit and the direct labour cost per unit and then multiply by the new production volume of 50000 units). (6 marks) 2.3 If the company decides to improve productivity through materials costs reduction only, by how much must the direct materials costs be reduced in order to achieve a 10 percent increase in total multifactor productivity? Assume that the current weekly production output of 40000 units and unit selling price of R350 has not changed. (10 marks)

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