Question: Calculate the multi - factor productivity for the current and new machinery. Use components per dollar cost ( labour cost plus machine cost ) as

Calculate the multi-factor productivity for the current and new machinery. Use components per
dollar cost (labour cost plus machine cost) as the measure. How much (in percentage) did the multifactor productivity grow? The management of a company that produces custom computer components received a proposal about investing in advanced machinery to streamline its production processes. Currently, with the existing machinery, the company employs five technicians who assemble an average of 140 components per hour in total. The labor cost is $15 per hour, and the machine cost is $50 per hour. According to the proposal, by implementing the new machinery, one technician can be reassigned to a different project. The machine cost will be increased by $20 per hour, but the output will be increased by six components per hour.

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