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Problem 4) A company wants to evaluate its labor and multi-factor productivity with a new computerized title search system. The company has a staff of
Problem 4) A company wants to evaluate its labor and multi-factor productivity with a new computerized title search system. The company has a staff of four, each working eight hours per day ( for a payroll cost of $640 / day ) and overhead expenses of $400 per day. Collins processes and closes on 8 titles each day.The new computerized title search system will allow the processing of 14 titles per day. Although the staff, their work hours, and pay are the same, the overhead expenses are now $800 per day. Calculate the change in productivity.
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