Question d

A local theatre company had an office staff of three, each working eight hours per day (for a total payroll cost of $6001day), and overhead costs of $250 per day. This office processed an average of 75 tickets each day. Then, the office purchased a computerized system that allowed the processing of an average of 150 tickets per day. Although the staff, work hours, and pay were the same, the overhead costs went up to $500 per day. a. Calculate the labour productivity in the old and the new systems. How much (in percentage) did the labour productivity grow? (5 marks) 0. Calculate the multi-factor productivity in the old and the new systems. How much (in percentage) did the multi-factor productivity grow? (5 marks) c. Which productivity measure is more appropriate for the theatre office? (2 marks) d. An upgrade to the computerized system would create greater efficiency and would require one additional employee in the office. The upgrade will result in additional overhead costs of $25/day and increase the average tickets per day to 175. Calculate the new multifactor productivity with the new upgrade and one more employee. Would you recommend the company purchasing this upgrade? Why or Why not? (8 marks)