Homework Answers
Output under current system = 23
Productivity of the current system
= Output / Total cost
= 23/3750
= 0.00613 units per $
Total cost under new system
= 680 x 5 + 700
= 3400 + 700
= $4100
Output under new system = 23 + 14 = 37
Productivity under the new system
= 37/4100
= 0.00902 units per $
The new system is more productive since it has a higher value than that of old system
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