ctions: Read carefully and solve the following problems.

JCO has expanded its market in Bahrain and has set up their own factory.

Initially they product 7,000 donuts each week. However, they intend to improve their productivity by acquiring new machine which will cost them BD 1, 800 and will be useful for 3 years. The annual labor cost that the company will spend is BD 4,000. However, there is another option which is purchasing an equipment that will cost BD 4,000 and with an operating life of 6 years. By doing so, it would also reduce labor costs to half of the previous labor cost per year. The company has workers who report in 2 shifts, 6am to 2 pm and 2pm to 10pm with a break of 50 minutes per shift.

Compare the labor productivity and multifactor productivity if they will purchase the equipment for 3 years with that of the 6 year period?