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1) A grocery chain is considering the installation of a set of 5 self-checkout lanes. The new self- checkout lane setup will replace 3 old

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1) A grocery chain is considering the installation of a set of 5 self-checkout lanes. The new self- checkout lane setup will replace 3 old cashier lanes that were staffed by a cashier and bagger on each lane. One cashier mans all 5 self-checkouts (answering questions, checking for un-scanned items, taking coupons, etc). Checkout on the new lanes takes 2 minutes (customers bag their own orders) while checkout with the old lanes took only 45 seconds. In addition the electricity costs for both setups are $.15 per checkout while bagging (material) costs are $.2 per checkout with the old system and $.25 for the new system. Assume that the lanes are always in use for 8 hours per day (1 shift) and that a worker makes $10/hour. a. How many checkouts did the old system provide in a shift? (5 pt) b. How many checkouts does the new system provide? (5 pt) c. What is the multifactor productivity for each system? (10 pt)

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