The MacJunkin Company manufactures transmission parts. The current process uses 20 workers and produces 400 units per hour. You are considering changing the process with new manufacturing methods that increase output to 470 units per hour but will require 22 workers. Workers are paid at a rate of $15 per hour, and overhead is charged at 140% (or 1.4 times) labor costs. Finished switches sell for $80/unit. The details are as follows: Current Process New Process Output (Units/Hour) 400 470 Number of Workers 20 22 Material (Cost/Hour) $120 $150 These are the correct answers can you show me how to get these answers? A. What is the multifactor productivity ratio for the current process? 38.10 B. What is the multifactor productivity ratio for the new process? 39.92 Your answer is correct.
The MacJunkin Company manufactures transmission parts. The current process uses 20 workers and produces 400 units per hour. You are considering changing the process with new manufacturing methods that increase output to 470 units per hour but will require 22 workers. Workers are paid at a rate of $15 per hour, and overhead is charged at 140% (or 1.4 times) labor costs. Finished switches sell for $80/unit. The details are as follows: Current Process New Process Output (Units/Hour) 400 470 Number of Workers 20 22 Material (Cost/Hour) $120 $150 These are the correct answers can you show me how to get these answers? A. What is the multifactor productivity ratio for the current process? 38.10 B. What is the multifactor productivity ratio for the new process? 39.92 Your answer is correct.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter4: Linear Programming Models
Section4.8: Data Envelopment Analysis (dea)
Problem 41P
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Question
The MacJunkin Company manufactures transmission parts. The current process uses 20 workers and produces 400 units per hour. You are considering changing the process with new manufacturing methods that increase output to 470 units per hour but will require 22 workers. Workers are paid at a rate of $15 per hour, and overhead is charged at 140% (or 1.4 times) labor costs. Finished switches sell for $80/unit. The details are as follows:
|
Current Process
|
New Process
|
Output (Units/Hour)
|
400
|
470
|
Number of Workers
|
20
|
22
|
Material (Cost/Hour)
|
$120
|
$150
|
These are the correct answers can you show me how to get these answers?
A. What is the multifactor productivity ratio for the current process?
38.10
B. What is the multifactor productivity ratio for the new process?
39.92
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