Answer:
A. Compute labor productivity under each system. Use carts per worker per hour as the measure of labor productivity.
- old system = 70 carts / 6 workers = 11.67 carts per worker
- new system = 76 carts / 5 workers = 15.2 carts per worker
B. Compute the multifactor productivity under each system. Use carts per dollar cost (labor plus equipment) as the measure.
- old system = 70 carts / ($108 + $30) = 0.51 carts per dollar
- new system = 76 carts / ($90 + $41) = 0.58 carts per dollar
C. Comment on the changes in productivity according to the two measures.
- The new system is more productive and efficient since it uses less workers to produce a higher output. The additional costs of implementing the new system are lower than the cost of employing more workers.
Explanation:
Multi factor productivity = total output / (cost of wages + material cost + overhead cost)
C. Stockholders. They buy parts of the company
Answer:
2,500,000 million dollars to break even
Explanation:
Answer:
Option D is the correct answer.
<u>Yes,it should be eliminated. Because operating income will increase by $15,200</u>
Explanation:
Increase (Decrease) in operating income
= Avoidable fixed costs - Contribution margin lost
= 26,400 - 11,200
= $15,200
