(Step-by-Step) A company dedicated to graphic arts has recently purchased equipment to reduce the labor content of its products. Before acquiring the new
Question: A company dedicated to graphic arts has recently purchased equipment to reduce the labor content of its products. Before acquiring the new equipment, the company used 5 workers that produced an average of 8 units per hour. The cost of labor of $ 10.00 per hour and that of the machines is $ 40.00 per hour. With the new equipment it was possible to transfer one of the workers to another department, the cost per hour of the machines increased by $ 10.00 and the production increased by 4 units per hour more.
- Determines the productivity of the workforce under each system (before and after acquiring the new equipment). Use production per hour and per worker as a measure of productivity.
- Determine the productivity under each system (before and after acquiring the new equipment). Uses the costs of labor plus equipment as a measure of productivity)
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