Problem $1$

The Jason Co$.$ manufactures electrical assemblies. The current process uses $10$ workers

and produces $200$ units per hour. You are considering changing the process with new assembly

methods that increase output to $300$ units per hour, but will require $14$ workers. Particulars are asfollows:

Workers are paid at a rate of $$20$ per hour, and overhead is charged at$140\%($or $1\mathrm{.}4$ times$)$ labor costs. Finished switches sell for $$10/$unit$.$

a$.(5$ points$)$ Calculate the labor productivity for the current process.

b$.(5$ points$)$ Calculate the labor productivity for the new process.

c$.(5$ points$)$ Calculate the multifactor productivity for the current process.

d$.(5$ points$)$ Calculate the multifactor productivity for the new process.

e$.(5$ points$)$ Determine if the new process should be implemented based on expected changes in

productivity. Explain. What other factors should be considered before deciding which process to

use?