Problems 1.11 Cunningham Performance Auto, Inc., modifies 375 autos per
year. The manager, Peter Cunningham, 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, 10,000 hours; 500 suspension and engine modification kits;
and energy, 100,000 kilowatthours. Average labor cost last year was $20
per hour, kits cost $1,000 each, and energy costs were $3 per
kilowatt-hour. What do you tell Mr. Cunningham?
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