QUESTION 1 A Company that makes shopping carts for supermarkets and other stores

Question

QUESTION 1 A Company that makes shopping carts for supermarkets and other stores recently purchased content of the jobs needed to produce the shopping carts. Prior to buying the new equipment, the company used 6 workers, who produced an average of 85 carts per hour. Workers receive $13 per hour, and machine coast was $45 per hour. With the new equipment, it was possible to rster one of the workers to another department, and equipment cost increased by $14 per hour while output increased by four carts per hour some new equipment that reduces the labor a) Compute the multifactor productivity (MFP) (labor plus equipment) under the Prior to buying the new equipment. The MFP (carts s)- (round to 4 decimal places). b) Compute the productivity changes between the Prior to and after buying the new equipment.T e the productivity changes between the Prior to and after buying the new equipment. The productivity growth- % (round to 2 decimal places) QUESTION 2 Compute the multifactor productivity measure for an S hour day in which the usable output was 530 units, peoduced by 4 workers who used 750 pounds of materials. Workers have an hourly wage of 18 and material cost is 1.3 per pound. Overhead is 1.5 times labor cost. The multifactor productivity (units's) (round to 4 decimal places) QUESTION 3 ??? A health club has 3 employees who work on lead generation. Each employee works 35 hours a week, and is paid S 18 aa bour. Each employee identifies an average of 305 possible leads a week from a list of 8.000 names. Approximately 10 percent of the leads become members and pay a one-time fee of S150. Material costs are S180 per week, and overhead costs are $988 per week. Calculate the multifactor productivity for this operation in fees generated per dollar of input, The multifactor productivity for this operation in fees generated per dollar of input - (round to 4 decimal places)

Explanation / Answer

Question 1)

Prior to buying equipment

Labor cost = 13*6 = $78

Machine cost = $45

Total cost = 45+78 = $123

Number of carts = 85

Multifactor productivity = Number of carts/Total cost = 85/123 = 0.691

After buying the equipment

Labor cost = 13*5 = $65

Machine cost = $59

Total cost = 65+59 = $124

Number of carts = 89

Multifactor productivity = 89/124 = 0.718

Productivity growth = (0.718-0.691)*100/0.691 = 3.91%

Question 2

Output = 530 units

Labor cost = 8*18*4 = $576

Material cost = 750*1.3 = $975

Overhead cost = 1.5*576 =$ 864

Total cost = 576+975+864 = $2415

Multifactor productivity = 530/2415 = 0.219

Question 3

Labor cost = 3*35*18 = $1890

Average leads generated = 305*3 = 915

Number of members = 10% of 915 = 91.5

Total fee generated = 91.5*150 = $13725

Material cost = $180

Overhead costs = $988

Total cost = $3058

Multifactor productivity = 13725/3058 = 4.488

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