ew equipment, it was possible to transfer one of the workers to another department, and equipment cost in hile output increased by 5 carts per hour. Compute labor productivity under each system. Use carts per worker per hour as the measure of labor pro nswers to 3 decimal places.) carts per worker per hour |carts per worker per hour Before After Compute the multifactor productivity under each system. Use carts per dollar cost (labor plus equipment) : pur answers to 3 decimal places.)

Management, Loose-Leaf Version
13th Edition
ISBN:9781305969308
Author:Richard L. Daft
Publisher:Richard L. Daft
Chapter7: Planning And Goal Setting
Section: Chapter Questions
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c. Comment on the changes in productivity according to the two measures. (Round your intermediate calculations to 3 decimal
places and final answers to 2 decimal places.)
by
by
Labor productivity
%
Multifactor productivity
%
Transcribed Image Text:c. Comment on the changes in productivity according to the two measures. (Round your intermediate calculations to 3 decimal places and final answers to 2 decimal places.) by by Labor productivity % Multifactor productivity %
A company that makes shopping carts for supermarkets and other stores recently 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 used 6 workers,
who together produced an average of 70 carts per hour. Workers receive $15 per hour, and machine cost was $40 per hour. With the
new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $10 per hour,
while output increased by 5 carts per hour.
a. Compute labor productivity under each system. Use carts per worker per hour as the measure of labor productivity. (Round your
answers to 3 decimal places.)
Before
carts per worker per hour
After
carts per worker per hour
b. Compute the multifactor productivity under each system. Use carts per dollar cost (labor plus equipment) as the measure. (Round
your answers to 3 decimal places.)
Before
carts/dollar cost
After
carts/dollar cost
Transcribed Image Text:A company that makes shopping carts for supermarkets and other stores recently 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 used 6 workers, who together produced an average of 70 carts per hour. Workers receive $15 per hour, and machine cost was $40 per hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $10 per hour, while output increased by 5 carts per hour. a. Compute labor productivity under each system. Use carts per worker per hour as the measure of labor productivity. (Round your answers to 3 decimal places.) Before carts per worker per hour After carts per worker per hour b. Compute the multifactor productivity under each system. Use carts per dollar cost (labor plus equipment) as the measure. (Round your answers to 3 decimal places.) Before carts/dollar cost After carts/dollar cost
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