1. The New Orleans plant produces wooden packing boxes to be used in the local seafood industry. Currentoperations allow the company to make 500 boxes per day, in two 8-hour shifts (250 boxes per shift). Thecompany has introduced some moderate changes in equipment, and conducted appropriate job training, so thatproduction levels have risen to 300 boxes per shift. Labor costs average $10 per hour for each of the 5 full-timeworkers on each shift. Capital costs were previously $3,000 per day, and rose to $3,200 per day with theequipment modifications. Energy costs were unchanged by the modifications, at $400 per day. What is the firm'smultifactor productivity before and after the changes?

Productivity is the capability of the worker to manufacture the products and services effectively…

Answered: 1. The New Orleans plant produces…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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1. The Dulac Box plant produces wooden packing boxes to be used in the local seafood industry. Current operations allow the company to make 500 boxes per day, in two 8- hour shifts (250 boxes per shift). The company has introduced some moderate changes in equipment, and conducted appropriate job training, so that production levels have risen to 300 boxes per shift. Labor costs average $10 per hour for each of the 5 full-time workers on each shift. Capital costs were previously $3,000 per day, and rose to $3,200 per day with the equipment modifications. Energy costs were unchanged by the modifications, at $400 per day. a) What is the firm's multifactor productivity before the changes? b) What is the firm's multifactor productivity after the changes?
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