3. Jason Performance Auto, Inc., modifies 375 autos per year.The manager, Jason Smith, is interested in obtaining a measure ofoverall performance. He has asked you to provide him with amultifactor measure of last year’s performance as a benchmark forfuture comparison. You have assembled the following data. Resourceinputs were labor, 10,000 hours; 500 suspension and enginemodification kits; and energy, 100,000 kilowatt-hours. Averagelabor cost last year was $20 per hour, kits cost $1,000 each, andenergy costs were $3 per kilowatt-hour. What do you tell Mr.Munson?
