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

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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 7 workers, who togetherproduced an average of 70 carts per hour. Workers receive $14 perhour, and machine cost was $30 per hour. With the new equipment, itwas possible to transfer one of the workers to another department,and equipment cost increased by $12 per hour, while outputincreased by 4 carts per hour.
a. Compute labor productivity under each system. Use carts perworker per hour as the measure of labor productivity. (Round youranswers to 3 decimal places.)

Problem 2 4 A Company That Makes Shopping Carts For Supermarkets And Other Stores Recently Purchased Some New Equipment 1 (2.48 KiB) Viewed 12 times

b. Compute the multifactor productivity under each system. Usecarts per dollar cost (labor plus equipment) as the measure. (Roundyour answers to 3 decimal places.)

Problem 2 4 A Company That Makes Shopping Carts For Supermarkets And Other Stores Recently Purchased Some New Equipment 2 (6.01 KiB) Viewed 12 times

c. Comment on the changes in productivity according to the twomeasures. (Round your intermediate calculations to 3 decimal placesand final answers to 2 decimal places.)

Problem 2 4 A Company That Makes Shopping Carts For Supermarkets And Other Stores Recently Purchased Some New Equipment 3 (7.78 KiB) Viewed 12 times

Before After 10.000 carts per worker per hour 12.330 carts per worker per hour
Before After 0.519 carts/dollar cost carts/dollar cost
Labor productivity Multifactor productivity by by % %