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 7 workers, who together produced an average of 90 carts per hour. Workers receive $11 per hour, and machine cost was $30 per hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $11 per hour, while output increased by 4 carts per hour. a. Compute labor productivity under each system. Use carts per worker per hour as the measure of labor productivity. (Round your answers to 3 decimal pleces.) Before carts per worker per hour carts per worker per hour Ater 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.) Belore cartsidolar cost cartsidolar cost After

Practical Management Science
6th Edition
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Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
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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 7 workers,
who together produced an average of 90 carts per hour. Workers receive $11 per hour, and machine cost was $30 per hour. With the
new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $11 per hour,
while output increased by 4 carts per hour.
a. Compute labor productivity under each system. Use carts per worker per hour as the measure of labor productivity. (Round your
onswers to 3 decimal places.)
Before
carts per worker per hour
carts per worker per hour
Ater
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 plances.)
Before
carts/dollar cost
After
carts/dollar cost
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 7 workers, who together produced an average of 90 carts per hour. Workers receive $11 per hour, and machine cost was $30 per hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $11 per hour, while output increased by 4 carts per hour. a. Compute labor productivity under each system. Use carts per worker per hour as the measure of labor productivity. (Round your onswers to 3 decimal places.) Before carts per worker per hour carts per worker per hour Ater 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 plances.) Before carts/dollar cost After carts/dollar cost
Before
carts/dollar cost
carts/dollar cost
After
c. Comment on the changes in productivity according to the two measures. (Round your intermediate calculotions to 3 decimal
places and final answers to 2 decimal places.)
Labor productivity
Multfactor productivity
by
by
Transcribed Image Text:Before carts/dollar cost carts/dollar cost After c. Comment on the changes in productivity according to the two measures. (Round your intermediate calculotions to 3 decimal places and final answers to 2 decimal places.) Labor productivity Multfactor productivity by by
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