AluTech, a light engineering company manufactures 1000 units per day with the following resources shown in the table:
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Costs
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Labor
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400 hours @ €12.50 per hour
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Raw Materials
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20,000kg @ €1 per kg
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Capital (€)
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€10,000 per day
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Energy
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€5,000 per day
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i) What is the labor productivity at AluTech?
ii) What is the multifactor productivity at AluTech?
iii) What is the percentage change in multifactor productivity if AluTech can reduce the energy bill by 50% per day, without cutting production or changing any other inputs?