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But you should check the cost of increasing the working time (is it worth it
to the 50% increase in productivy or not)
Exercise 2
Condition 1 Condition 2
Worker 3 3
Output (loans/day) 5 8
Payroll in Total (dolars) 820 820
Payroll/person (dolars) 273.3 273.3
Overhead Expense (dollars) 500 550 10.00%
Analysis
The bank should proceed to purchase of the new software because adding a new
software will increase the productivy and multifactor productivity to around 60%, just
by increase the overhead expense to 10%
Exercise 4
Output (Carts/hr) 80
Workers Numbers 5
Fee/hr in $ 10
Machine Cost/hr in $ 40
A
Labor Productivity for each system
carts/worker/hr before 16
carts/worker/hr after 21
Analysis
C
The Production System 3 is more pertinent productivity
Growth Productivity Increase 0.3125 31.25
Multifactor Productivity (inc. mac 0.045 4.49
Exercise 3
Last Year Now Delta (%)
Unit produced 1000 1000 0
Labor (hours) 300 275 -9%
Resin (pounds) 50 45 -11%
Capital Invested ($) 10000 11000 9%
Energy (BTU) 3000 2850 -5%
Analysis
Delta (%)
38%
20%
n current productivity.
n a 38% increase in
Future ( 3% Increase)
0.00
0.00
0.00
0.00