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Help Seve A company that makes shopping carts for supermarkets and other stores recenty purchased some new equipment that red
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Answer #1

Before change

Total Carts made per hour = 60

Total no, of workers = 7

Labor productivity = Carts per worker per hour = 60/7 = 8.571 units per worker per hour

Cost of all worker per hour = 7*17 = $119 per hour

Machine cost = $40 per hour

Total cost per hour = $119+$40 = $159

Multi factor productivity = Carts/dollar cost per hour = 60/$159 = 0.377 carts per dollar

After Change

Total Carts made per hour = 65

Total no, of workers = 6

Carts per worker per hour = 65/6 = 10.833 units per worker per hour

Cost of all worker per hour = 6*17 = $102 per hour

Machine cost = $40+$11 = $51 per hour

Total cost per hour = $102+$51 = $153

Multi factor productivity = Carts/dollar cost per hour = 65/$153= 0.425 carts per dollar

Requirement a. Labor productivity

Before 8.571 Carts per worker per hour
After 10.833 Carts per worker per hour


Requirement b. Multi factor productivity

Before 0.377 Carts / dollar cost
After 0.425 Carts / dollar cost

Requirement c. % increase in productivity

Labor productivity increase by 26.391%
Multi factor productivity increase by 12.732%

Calculated as % increase labor productivity = (10.833-8.571)*100/8.571 = 26.391%

Calculated as % increase multi factor productivity = (.425-.377)*100/.377 = 12.732%

FEEL FREE TO ASK ANY CLARIFICATION IF ANY REQUIRED KINDLY PROVIDE FEED BACK BY THUMBS UP IF SATISFIED IT WILL BE HIGHLY APPRECIATED

THANK YOU

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