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A hamburger factory produces 55,000 hamburgers each week. The equipment used costs $15,000 and will remain productive for three years. The labor cost per


 

A hamburger factory produces 55,000 hamburgers each week. The equipment used costs $15,000 and will remain productive for three years. The labor cost per year is $14,500. a. What is the productivity measure of "units of output per dollar of input" averaged over the three-year period? Assume that there are 52 weeks per year. Round your answer to one decimal place. Productivity: hamburgers/dollar b. We have the option of $11,000 equipment, with an operating life of two years. It would increase labor costs to $16,500 per year. Should we consider purchasing this equipment (using productivity arguments alone)? Assume that there are 52 weeks per year. Round your answer for productivity to one decimal place. For the cheap machine, productivity is investment based on this single criterion. hamburgers/dollar input. Because the productivity of the cheap machine is it would be a

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