A manager checked production records and found that a worker produced 190 units while working 50 hours. In the previous week, the same worker produced 144 units while working 40 hours.

a. Compute Current period productivity and Previous period productivity. (Round your answers to 2 decimal places.)

Current period productivity			Units / hr
Previous period productivity			Units / hr

b. Did the worker's productivity increase, decrease, or remain the same? (Round your intermediate calculations and final answer to 2 decimal places. Omit the "%" sign in your response.) Worker's productivity (Click to select) decreased remain the same increased by____ %

Problem 8-1

A newly formed firm must decide on a plant location. There are two alternatives under consideration: locate near the major raw materials or locate near the major customers. Locating near the raw materials will result in lower fixed and variable costs than locating near the market, but the owners believe there would be a loss in sales volume because customers tend to favor local suppliers. Revenue per unit will be $185 in either case.

	Omaha		Kansas City
Annual fixed costs ($ millions)	$	1.2	$	1.0
Variable cost per unit	$	35	$	50
Expected annual demand (units)		10,150		10,750

Using the above information, determine which location would produce the greater profit. (Omit the "$" sign in your response.) (Click to select) Kansas City Omaha would produce the greater gross profit of $ .

Problem 8-1

A newly formed firm must decide on a plant location. There are two alternatives under consideration: locate near the major raw materials or locate near the major customers. Locating near the raw materials will result in lower fixed and variable costs than locating near the market, but the owners believe there would be a loss in sales volume because customers tend to favor local suppliers. Revenue per unit will be $185 in either case.

	Omaha		Kansas City
Annual fixed costs ($ millions)	$	1.2	$	1.0
Variable cost per unit	$	35	$	50
Expected annual demand (units)		10,150		10,750

Using the above information, determine which location would produce the greater profit. (Omit the "$" sign in your response.) (Click to select) Kansas City Omaha would produce the greater gross profit of $ .