Chuck Sox Makes Wooden Boxes

problem 1:3Chuck Sox makes wooden boxes in which to ship motorcycles. Chuck and his three employees invest a total of 40 hours per day making the 120 boxes.a) What is their productivity?b) Chuck and his 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?SolutionProductivity = output/labor input = 120/40 = 3 boxes per labor hourNew Productivity = output/labor input = 125/40 = 3.125 boxes per labor hourUnit increase in productivity per hour = 3.125 - = 0.125 boxes per hourPercentage change in productivity = {(3.125 -3)/3}*100 = 4.16 %1.9 Lillian Fok is president of Lakefront Manufacturing, a producer of bicycle tires. Fok makes 1,000 tires per day with the following resources.Labor: 400 hours per day @ $12.50 per hourRaw material: 20,000 pounds per day @ $1 per poundEnergy: $5,000 per dayCapital costs: $10,000 per daya) What is the labor productivity per labor-hour for these tires at Lakefront Manufacturing?b) What is the multifactor productivity for these tires at Lakefront Manufacturing?c)