Question
Table 1.2 The shoe company manufactures shoes. The current process uses 15 workers and produces 50 units per hour. You are considering changing the process
Table 1.2 The shoe company manufactures shoes. The current process uses 15 workers and produces 50 units per hour. You are considering changing the process with new automated technologies that increase output to 75 units per hour, but will require only 10 workers. Particulars are as follows:
CURRENT PROCESS | NEW PROCESS | |
OUTPUT (UNITS / HOUR) | 50 | 75 |
NUMBER OF WORKERS | 15 | 10 |
MATERIAL COST / HOUR | $1000 | $1250 |
Workers are paid at a rate of $15 per hour, and overhead is charged at 150% (or 1.5 times) labor costs. Finished batteries sell for $200 / unit. Use the information provided in Table 1.2. What is the multifactor productivity of the current process?
Group of answer choices
less than or equal to 6.0
greater than 6.0 but less than or equal to 9.0
greater than 9.0 but less than or equal to 12.0
greater than 12.0
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