What is productivity measure of units of output per dollar

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A factory produces 40,000 hamburgers each week. The equipment used cost $5,000 and will remain productive for 3 years. The labor cost per year is $8,000.

What is the productivity measure of "units of output per dollar of input" averaged during the 3 year period? (Show calculations).

There is an option of new equipment that cost $10,000, with an operating life of 5 years. It would reduce cost to$4,000 per year. Based on productivity measurement, should the company get the new equipment? (Show calculations)

 

Reference no: EM13225556

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