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computerized m
Berry Company is considering the acquisition of a computerized m
Required:
1. Compute the partial operational ratios for materials and labor under each alternative. Is the
production manager right in thinking that materials and labor productivity increase with the
automated system?
2. Compute the productivity profiles for each system. Does the computerized system improve
productivity?
3. Determine the amount by which profits will change if the computerized system is adopted.
Are the trade-offs among the inputs favorable? Comment on the system’s ability to
improveproductivity.
ANSWER
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