A company has introduced a process improvement that reduces processing time for each unit, so that output is increased by 25% with less material, but one additional worker required. Under the old process, five workers could produce 60 units per hour. Labor costs are $12/ hour, and material input was previously $16/ unit. For the new process, material is now $10/ unit. Overhead is charged at 1.6 times direct labor cost. Finished units sell for $31 each. Determine the labor productivity and multifactor productivtivity after the improvement? Factor Output \# of workers Worker cost Material Overhead Price Old System 60 5 $12/hr \$16/unit 1.6(labor cost) 31 New System 60(1.25)=75 6 $12/hr \$10/unit 1.6(labor cost) 31 a. Labor productivity Old System : 16.5 New System : 22 Multifactor productivity Old System : 0.87 New System : 0.93 b. Labor productivity Old System : 16 New System : 21 Multifactor productivity Old System : 0.89 b. Labor productivity Old System : 16 New System : 21 Multifactor productivity Old System : 0.89 New System : 0.93 C. Labor productivity Old System : 11 New System : 22 Multifactor productivity Old System : 0.93 New System : 0.88 d. Labor productivity Old System : 22 New System : 22 Multifactor productivity Old System : 0.85 New System : 0.93