The company is planning to purchase a new machine to reduce scrap and labor hours. Using the new machine, each guitar only requires 8 labor hours and and only 5 percent scrapped. Each employee works an average of 160 hours per month. Labor is paid at $10/hour, materials cost is $40/guitar, and new overhead is $5,000. iii. Calculate the new multifactor productivity. [2 marks] Determine the rate of increase/decrease in multifactor productivity (in percentage wise) [2 marks] iv. V. Should the company proceed with the purchase of the new machine? Explain your answers. [2 marks] The company is planning to purchase a new machine to reduce scrap and labor hours. Using the new machine, each guitar only requires 8 labor hours and and only 5 percent scrapped. Each employee works an average of 160 hours per month. Labor is paid at $10/hour, materials cost is $40/guitar, and new overhead is $5,000. iii. Calculate the new multifactor productivity. [2 marks] Determine the rate of increase/decrease in multifactor productivity (in percentage wise) [2 marks] iv. V. Should the company proceed with the purchase of the new machine? Explain your answers. [2 marks]