A bicycle manufacturing company recently invested in new machinery to enhance its production process. Prior

to acquiring this machinery, the company had a workforce of $8$ employees who, on average, produced $120$

bicycles per hour. The workers were compensated at a rate of $$15$ per hour, while the machinery cost was $$60$

per hour. With the implementation of the new machinery, the company was able to reassign two workers to

other departments. However, the cost of using the machinery increased by $$20$ per hour, while the production

output increased by $8$ bicycles per hour.

$($Essentially required: Your answer should comprise $3$ steps: $1)$ Show data, $2)$ Formula, and $3)$ answer

highlighted in yellow. No point is awarded if this is missing$)$

Answer $($add more space if needed$)$

Calculate the labor productivity for both systems $($that is$,$ prior to and after acquiring machinery$)$ using the

measure of bicycles produced per worker $(2$ points$)$

Calculate multifactor productivity for both systems, using the measure of bicycles produced per dollar of

cost $($combining labor and equipment costs$).(2$ points$)$

What is the percent changes in labor productivity $($due to transition from old to new system$)(1$ point$).$