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Help Seve A company that makes shopping carts for supermarkets and other stores recenty purchased some...


Help Seve A company that makes shopping carts for supermarkets and other stores recenty purchased some new equipment that red
Help Seve A company that makes shopping carts for supermarkets and other stores recenty purchased some new equipment that reduces the labor content of the Jobs needed to produce the shopping carts. Prior to buying the new equipment, the company who together produced an average of 60 carts per hour. Workers new equipment, t was possible to transfer one of the workers to another department, and equipment cost increased by $11 per hour whille output Increased by 5 carts per hour used 7 workers, recelve $17 per hout and machine cost was $40 per hour. With the a. Compute labor productivity under each system. Use carts per worker per hour as the measure of labor answers to 3 decimal places) productivity Round your b. Compute the mutifactor productivity under each system Use carts per dolar cost (0abor plus equlpmenit) as the measure. (Round your answers to 3 decimal places) c. Comment on the changes in productivity according to the two measures. Round your intermediete calculations to 3 declmal places and final answers to 2 decimal places Prey 2 of3 Next> MacBook Air 名 ". 6 3 comman
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Answer #1

Before change

Total Carts made per hour = 60

Total no, of workers = 7

Labor productivity = Carts per worker per hour = 60/7 = 8.571 units per worker per hour

Cost of all worker per hour = 7*17 = $119 per hour

Machine cost = $40 per hour

Total cost per hour = $119+$40 = $159

Multi factor productivity = Carts/dollar cost per hour = 60/$159 = 0.377 carts per dollar

After Change

Total Carts made per hour = 65

Total no, of workers = 6

Carts per worker per hour = 65/6 = 10.833 units per worker per hour

Cost of all worker per hour = 6*17 = $102 per hour

Machine cost = $40+$11 = $51 per hour

Total cost per hour = $102+$51 = $153

Multi factor productivity = Carts/dollar cost per hour = 65/$153= 0.425 carts per dollar

Requirement a. Labor productivity

Before 8.571 Carts per worker per hour
After 10.833 Carts per worker per hour


Requirement b. Multi factor productivity

Before 0.377 Carts / dollar cost
After 0.425 Carts / dollar cost

Requirement c. % increase in productivity

Labor productivity increase by 26.391%
Multi factor productivity increase by 12.732%

Calculated as % increase labor productivity = (10.833-8.571)*100/8.571 = 26.391%

Calculated as % increase multi factor productivity = (.425-.377)*100/.377 = 12.732%

FEEL FREE TO ASK ANY CLARIFICATION IF ANY REQUIRED KINDLY PROVIDE FEED BACK BY THUMBS UP IF SATISFIED IT WILL BE HIGHLY APPRECIATED

THANK YOU

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