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Your company makes common coffee mugs and you purchased new equipment to improve labor productivity.

For the last few years, your production line consisted of six workers earning $13.80 per hour making a total of 626 cups per hour. The original machines cost $190 per hour to operate.

With the new equipment, you now operate with only five workers earning of $12.95 per hour. The new equipment costs $232 per hour which allows you to produce a total of 668 cups per hour.

Calculate 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)

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92498537

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