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19 February, 20:13

Munson Performance Auto, Inc., modifies 375 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, 10500 hours; 500 suspension and engine modification kits; and energy, 100000 kilowatt-hours. Average labor cost last year was $25 per hour, kits cost $1,000 each, and energy costs were $5 per kilowatt-hour. The overall performance at Munson Performance Auto, Inc. = autos/dollar of input (round your response to six decimal places).

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  1. 19 February, 20:27
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    overall performance 0.000297

    Explanation:

    cost of inputs:

    labor 10,500 hours x 25 each = 262,500

    suspension and engine 500 kits x 1,000 each = 500,000

    energy 100,000 kilowatt-hous x 5 each = 500,000

    total input resource cost 1,262,500

    performance:

    375 / 1,262,500 = 0.00029703

    rounding to 6 decimal places: 0.000297
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