Answered

Find the best solutions to your questions at Westonci.ca, the premier Q&A platform with a community of knowledgeable experts. Discover the answers you need from a community of experts ready to help you with their knowledge and experience in various fields. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.

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 $11 per hour, while output increased by 5 carts per hour.

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.)
1. Labor productivity is increased or decreased by what %?
2. Multifactor productivity is increased or decreased by what %?

Sagot :

Answer: Hope this help. Please mark me brainliest :)

Explanation:

a.

Before: 90 ÷ 6 = 15.00 carts per worker per hour.

After: 96 ÷ 5 = 19.20 carts per worker per hour.

b.

Before: $14 x 6 = $84 + $40 = $124; hence 90 ÷ $124 = 0.73 carts/dollar cost.

After: $14 x 5 = $70 + $51 = $121; hence 96 ÷ $121 = 0.79 carts/dollar cost.

c.

Labor productivity increased by 28.00% (4.20/15.00).

Multifactor productivity increased by 8.22% (0.06/0.73).

We hope this information was helpful. Feel free to return anytime for more answers to your questions and concerns. Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. Find reliable answers at Westonci.ca. Visit us again for the latest updates and expert advice.