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A company that makes shopping carts for supermarkets and other stores 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 five workers, who together produced an average of 80 carts per hour. Workers receive $10 per hour, and machine cost was $40 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 output increased by four carts per hour. a. Compute labor productivity under each system. Use carts per worker per hour as the measure of labor productivity. Before 10 carts per worker per hour After 12.33 carts per worker 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 3 decimal places.) Before 0.482 carts/dollar cost After carts/dollar cost c. Comment on the changes in productivity according to the two measures. (Round your intermediate calculations to 3 decimal places and final answers to 2 decimal places. Omit the "%" signs in your response.) Labor productivity Multifactor productivity (Click to select) ♥ by (Click to select) ♥ by

A company that makes shopping carts for supermarkets and other stores 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 five workers, who together produced an average of 80 carts per hour. Workers receive $10 per hour, and machine cost was $40 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 output increased by four carts per hour. a. Compute labor productivity under each system. Use carts per worker per hour as the measure of labor productivity. Before 10 carts per worker per hour After 12.33 carts per worker 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 3 decimal places.) Before 0.482 carts/dollar cost After carts/dollar cost c. Comment on the changes in productivity according to the two measures. (Round your intermediate calculations to 3 decimal places and final answers to 2 decimal places. Omit the "%" signs in your response.) Labor productivity Multifactor productivity (Click to select) ♥ by (Click to select) ♥ by

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter5: Network Models
Section: Chapter Questions
Problem 1C
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A company that makes shopping carts for supermarkets and other stores 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 five workers, who together produced an average of 80 carts per hour. Workers receive $10 per hour, and machine cost was $40 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 output increased by four carts per hour. a. Compute labor productivity under each system. Use carts per worker per hour as the measure of labor productivity. Before 10 carts per worker per hour After 12.33 carts per worker 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 3 decimal places.) Before 0.482 carts/dollar cost After carts/dollar cost c. Comment on the changes in productivity according to the two measures. (Round your intermediate calculations to 3 decimal places and final answers to 2 decimal places. Omit the "%" signs in your response.) (Click to select) v by Labor productivity Multifactor productivity |(Click to select) ♥ by
Transcribed Image Text:A company that makes shopping carts for supermarkets and other stores 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 five workers, who together produced an average of 80 carts per hour. Workers receive $10 per hour, and machine cost was $40 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 output increased by four carts per hour. a. Compute labor productivity under each system. Use carts per worker per hour as the measure of labor productivity. Before 10 carts per worker per hour After 12.33 carts per worker 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 3 decimal places.) Before 0.482 carts/dollar cost After carts/dollar cost c. Comment on the changes in productivity according to the two measures. (Round your intermediate calculations to 3 decimal places and final answers to 2 decimal places. Omit the "%" signs in your response.) (Click to select) v by Labor productivity Multifactor productivity |(Click to select) ♥ by
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ISBN:
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