$2\mathrm{.}1$ A hamburger factory produces $60,000$ hamburgers each week. The equipment used costs

$$10,000$ and will remain productive for four years. The labor cost per year is $$13,500.$

a$.$ What is the productivity measure of "units of output per dollar of input" averaged over the

four$-$year period?

b$.$ We have the option of $$13,000$ equipment, with an operating life of five years. It would reduce

labor costs to $$11,000$ per year. Should we consider purchasing this equipment $($using

productivity arguments alone$)?2\mathrm{.}2$ What is the average value of a loyal customer $($VLC$)$ in a target market segment if the average

purchase price is $$70$ per visit, the frequency of repurchase is every month, the contribution

margin is $20$ percent, and the average customer defection rate is $25$ percent? If a continuous

improvement goal is set of a $20$ percent defection rate next year and $15$ percent two years from

now, what are the revised VLCs over their average buying life?