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Sam's Deli makes sandwiches for sale to customers who typically purchase a sandwich and a cup of coffee for breakfast. Sandra, a Sales Assistant at the deli, makes the sandwiches. It takes Sandra five minutes to toast the bread, make the sandwich and wrap it before placing it in the warmer. Sandra is paid $12.00 per hour by the deli and it takes her 5 minutes to make and wrap a sandwich. The following ingredients are used in making a sandwich: Bread $0.10 per sandwich, turkey $0.40 per sandwich, condiments $0.05 per sandwich and packaging material and napkin $0.02 per sandwich.

A sandwich is sold for $2.60.

a. What is Sandra's labor productivity? (units per hour).

b. What is Sandra's multifactor productivity (units of output per $1 of input) (All calculations must be clearly shown)

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M92489773

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