A company is deciding which of three locations to choose for a new mail-order sorting facility....
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A company is deciding which of three locations to choose for a new mail-order sorting facility. The table below shows each location's labor cost and overhead rate per hour. The new facility is expected to process 360 orders per hour with 3 workers per 8-hour shift. Costa Overhead (5/hr) Labor Location 1 5.61 11.26 Location 1 Location 2 Location 3 Location 2 4.97 ($/hr/person) a. Compute the multifactor productivity for each location. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) orders per dollar orders per dollar orders per dollar b. Which location should be chosen? Location 3 4.76 10.36 A company is deciding which of three locations to choose for a new mail-order sorting facility. The table below shows each location's labor cost and overhead rate per hour. The new facility is expected to process 360 orders per hour with 3 workers per 8-hour shift. Costa Overhead (5/hr) Labor Location 1 5.61 11.26 Location 1 Location 2 Location 3 Location 2 4.97 ($/hr/person) a. Compute the multifactor productivity for each location. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) orders per dollar orders per dollar orders per dollar b. Which location should be chosen? Location 3 4.76 10.36
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