[solved]-Problem 2 4 Company Makes Shopping Carts Supermarkets Stores Recently Purchased New Equipm Q39658793

Problem 2-4

A company that makes shopping carts for supermarkets and otherstores recently purchased some new equipment that reduces the laborcontent of the jobs needed to produce the shopping carts. Prior tobuying the new equipment, the company used 5 workers, who togetherproduced an average of 100 carts per hour. Workers receive $12 perhour, and machine cost was $50 per hour. With the new equipment, itwas possible to transfer one of the workers to another department,and equipment cost increased by $11 per hour while output increasedby 4 carts per hour.

  

a.

Compute labor productivity under each system. Use carts perworker per hour as the measure of labor productivity.(Round your answers to 2 decimal places.)

    

  Before

  carts per worker per hour

  After

  carts per worker per hour

   

b.

Compute the multifactor productivity under each system. Usecarts per dollar cost (labor plus equipment) as the measure.(Round your answers to 2 decimal places.)

    

  Before

  

carts / dollar cost

  After

  

carts / dollar cost

    

c.

Comment on the changes in productivity according to the twomeasures. (Round your intermediate calculations and finalanswers to 2 decimal places. Omit the  “%” signs in yourresponse.)

    

  Labor productivity

      (Click to select) decreased /increased by  %

  Multifactor productivity

      (Click to select)

decreased / increased  by   %

Expert Answer

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Answer to Problem 2-4 A company that makes shopping carts for supermarkets and other stores recently purchased some new equipment … . . .