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GoKarts ©, a company that makes shopping carts for supermarkets recently purchased some new equipment that reduces the labor content of the jobs needed to produce the shopping carts. Prior to buying the new equipment, the company used six workers, who produced an average of 96 carts per hour. Workers receive $ 12 per hour and machine cost was $ 50 per hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $ 10 per hour while input increased by four carts per hour. Working hours per month: 160 a. Compute monthly labor productivity under each system. b. Compute the monthly multifactor productivity under each system c. Compute the changes in monthly productivity and comment on them according to the two measures.
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Compute the labor productivity and the multifactor productivity for each unit. Use an 8 hour day for multifactor productivity. And if a new procedure is introduced that allows employees to process one additional customer per day
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