For the last few years, your production line consisted of six workers earning $1
ID: 397585 • Letter: F
Question
For the last few years, your production line consisted of six workers earning $12.15 per hour making a total of 642 cups per hour. The original machines cost $185 per hour to operate. With the new equipment, you now operate with only five workers earning of $14.90 per hour. The new equipment costs $240 per hour which allows you to produce a total of 654 cups per hour alculate the multifactor productivity measure for before and after the new equipment (i.e., mugs per dollar cost). Enter the percentage change in productivity as your answer. (Keep two decimal places) Your Answer:Explanation / Answer
Before the new equipment:
After the new equipment:
Percentage change in multifactor productivity = (Multifactor productivity after the equipment - Multifactor productivity before the equipment)/ Multifactor productivity before the equipment
= (2.08 - 2.49) / 2.49
= -0.41 / 2.49
= -0.1647
= -16.47%
Therefore the productivity decreased by 16.47%