Compute the multifactor productivity under each system

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Reference no: EM131113700

A company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labor content o jobs needed to produce the shopping carts. Prior to buying the new equipment, the company used 5 workers, who together produced an average of 80 carts per hour. Workers receive $12 per hour, and the 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 dollars per hour while output increased by 5 carts per hour. B. Compute the multifactor productivity under each system. Use carts per dollar cost. (labor plus equipment) as the measure (Round your answers to 2 decimal places) Before carts/dollar cost After carts/dollar cost. C. Comment on the changes in productivity according to the two measures. (Round your intermediate calculations and final answers to 2 decimal places). Labor productivity increased by % Multifactor productivity increased by %.

Reference no: EM131113700

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