A company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces thelabor 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 90 carts per hour. Workers receive $15 per hour, and machine cost was $40 per hour. With thenew equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $12 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 youranswers to 3 decimal places.)Beforei carts per worker per hourAftercarts per worker per hourcesb. Compute the multifactor productivity under each system. Use carts per dollar cost (labor plus equipment) as the measure. (Roundyour answers to 3 decimal places.)Beforecarts/dollar costAftercarts/dollar costc. Comment on the changes in productivity according to the two measures. (Round your intermediate calculations to 3 decimalplaces and final answers to 2 decimal places.)Mc c. Comment on the changes in productivity according to the two measures. (Round your intermediate calculations to 3 decimalplaces and final answers to 2 decimal places.)Labor productivitybybyMultifactor productivity

Given values: Before buying the new equipment: Number of workers = 6 Production = 90 carts per hour…

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 90 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 $12 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 Ater carts per worker per hour ces 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 Ater carte/dollar cost 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.)

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 90 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 $12 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 Ater carts per worker per hour ces 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 Ater carte/dollar cost 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.)

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter9: Applications Of Cost Theory

Section: Chapter Questions

Problem 1.3CE

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