Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 5 workers, who together produced an average of 100 carts per hour. Workers recelve $13 per hour, and machine cost was $40 per hour. With the new equipment, It was possible to transfer one of the workers to another department, and equipment cost Increased by $12 per hour, while output Increased by 6 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 places.)
\table[[,],[Before,,carts per worker per hour],[After,,carts per worker per hour]]
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.)
\table[[,],[Before,,carts/dollar cost],[After,,carts/dollar cost]]
c. Comment on the changes in productivity according to the two measures. (Round your Intermedlate calculations to 3 decimal places and final answers to 2 decimal places.)
\table[[,,,,],[Labor productivity,,by,,],[Multifactor productivity,,by,,%
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Concepts For A Changing Environment With IDEA Software

Authors: Larry E. Rittenberg, Bradley J. Schwieger

4th Edition

0387321500, 978-0324180237

More Books

Students also viewed these Accounting questions