A hamburger factory produces 50,000 hamburgers each week. The equipment used costs $14,000 and will remain...
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A hamburger factory produces 50,000 hamburgers each week. The equipment used costs $14,000 and will remain productive for three years. The labor cost per year is $12,500. a. What is the productivity measure of "units of output per dollar of input" averaged over the three-year period? Assume that there are 52 weeks per year. Round your answer to one decimal place. Productivity: hamburgers/dollar b. We have the option of $16,500 equipment, with an operating life of four years. It would reduce labor costs to $10,500 per year. Should we consider purchasing this equipment (using productivity arguments alone)? Assume that there are 52 weeks per year. Round your answer for productivity to one decimal place. For the expensive machine, productivity is hamburgers/dollar input. A hamburger factory produces 50,000 hamburgers each week. The equipment used costs $14,000 and will remain productive for three years. The labor cost per year is $12,500. a. What is the productivity measure of "units of output per dollar of input" averaged over the three-year period? Assume that there are 52 weeks per year. Round your answer to one decimal place. Productivity: hamburgers/dollar b. We have the option of $16,500 equipment, with an operating life of four years. It would reduce labor costs to $10,500 per year. Should we consider purchasing this equipment (using productivity arguments alone)? Assume that there are 52 weeks per year. Round your answer for productivity to one decimal place. For the expensive machine, productivity is hamburgers/dollar input.
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Related Book For
OM operations management
ISBN: 978-1285451374
5th edition
Authors: David Alan Collier, James R. Evans
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