The manager Emily at Cozy Stitches has a team of 20 artisans: 6 Skilled knitters, 4 Junior knitters and 10 assistants, each of whom had a unique talent when it came to knitting sweaters. Wage structure for each artisan type is as follows: Skilled Knitters: $30 per hour, Junior Knitters: $25 per hour, Assistants: $20 per hour. On average, each artisan worked for 8 hours a day, with breaks to rest their nimble fingers. On average, they produced 30 sweaters collectively each day. Beyond the wages and materials, the workshop incurred miscellaneous expenses to keep the operation running efficiently. These included the cost of quality wool and yarn, knitting needles, utilities, and maintenance of the knitting machines. On average, these miscellaneous expenses amounted to $500 per day. With the additional demand, Emily started to think about purchasing a state-of-the-art knitting machine that would help the company meet the rising demand without compromising on quality. The machine is capable of knitting sweaters at an impressive speed and with great precision. The cost of operating the machine, including maintenance and electricity, on top of the previous miscellaneous expenses amounted to $100 per day. With the machine, Cozy Stitches can produce an additional 50 sweaters per day, increasing their daily production from 30 to 80 sweaters. However, this change also meant that some of the artisans would have to be let go. Emily must make the difficult decision to terminate the employment of a few of the workers. After assessing the situation, she needs to let go of 3 Skilled knitters, 2 junior knitters and 5 assistants. Emily wants to determine the impact of the new machine on productivity. Answer the questions below based on the information provided. The productivity is measured as production output (no. of sweaters per day) per daily labor and additional expenses (in $ per day). NOTE 1: SHOW ALL YOUR WORK. USE 4 DECIMAL PLACES IN YOUR CALCULATIONS. NOTE 2: YOU SHOULD PROVIDE AND EXPLAIN ALL STEPS IN YOUR SOLUTION IN AN EXCEL WORKSHEET. NAME YOUR WORKSHEET AS Q1.

a) (8 points) What is the current daily productivity level at Cozy Stitches?

b) (8 points) What will be the daily productivity level at Cozy Stitches if Emily adapts the new machine?

c) (4 points) What is the expected percentage change in daily productivity at Cozy Stitches if Emily adapts the new machine?