Question:
The Abco Company manufactures electrical assemblies The
Last updated: 4/30/2023
The Abco Company manufactures electrical assemblies The current process uses 10 workers and produces 200 units per hour You are considering changing the process with new assembly methods that increase output to 300 units per hour but will require 14 workers Workers are paid at a rate of 10 per hour Finished switches sell for 20 unit Using the information provided in Table below what is the multifactor productivity of the current process and the new process Based on your productivity calculations what decision should you make Should you go with the new process and why Show all your solution work and answers CURRENT PROCESS OUTPUT UNITS HOUR 200 NUMBER OF WORKERS 10 MATERIAL COST HOUR 120 NEW PROCESS 300 14 150