Question

A publishing company plans to replace its four proofreaders who look for
errors in manuscripts with a new scanning machine and one proofreader in
case the machine breaks down. Currently the proofreaders check 15
manuscripts every week between them. Each is paid $80,000 per year. Hiring
the new scanning machine will cost $5,000 each calendar month. How will this
new system affect the proofreading department’s productivity?

Answer 1

Current system
Proofreaders	4
Manuscripts	15	per week
Cost	80000	per year
Total cost	320000
Total manuscripts	780
Cost/manuscript	410.26

New system
Machine cost	60000	5000 per month X12
One proofreader	80000
Total manuscripts	780
Total cost	140000
Cost/manuscript	179.49

Hence the proofreading department's productivity improves from $410.26 per manuscript to $179.49