Mariah Enterprises makes a variety of consumer electronic products. Its camera manufacturing plant is considering choosing between two different processes, named Alpha and Beta, which can be used to make a component part. To make the correct decision, the managers would like to compare the labor and multifactor productivity of process Alpha with that of process Beta. The value of process output for Alpha and Beta is $175 and $140 per unit, and the corresponding overhead costs are $6,000 and $5,000, respectively.

a. Which process, Alpha or Beta, is more productive?
b. What conclusions can you draw from youranalysis?

  • CreatedNovember 07, 2013
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