Merrifield Post Office is evaluating the productivity of its mail processing centers. The centers differ in the degree of automation, the type of work that can be performed, and the skill of the workers. Center 1 2 3 Pieces processed /hr 1000 2000 3000 No.of workers /hr 10 5 2 Hourly wage rate $5.50 $10 $12 Overhead rate /hr $10 $25 $50 a. Calculate the multifactor productivity for each center. b. A new processing machine is available for Center 3, that would increase the output to 5000 pieces an hour at an additional overhead rate of $30 an hour. Should Merrifield install the new processing machine?

Merrifield Post Office is evaluating the productivity of its mail processing centers. The centers differ in the degree of automation, the type of work that can be performed, and the skill of the workers. Center 1 2 3 Pieces processed /hr 1000 2000 3000 No.of workers /hr 10 5 2 Hourly wage rate $5.50 $10 $12 Overhead rate /hr $10 $25 $50 a. Calculate the multifactor productivity for each center. b. A new processing machine is available for Center 3, that would increase the output to 5000 pieces an hour at an additional overhead rate of $30 an hour. Should Merrifield install the new processing machine?

Management, Loose-Leaf Version

13th Edition

ISBN:9781305969308

Author:Richard L. Daft

Publisher:Richard L. Daft

Chapter7: Planning And Goal Setting

Section: Chapter Questions

Problem 2ED

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