Sandra Lee wants to evaluate its labor and multifactor productivity with a new computerized title-search system. The company has a staff of four, each working 8 hours per day (for a payroll cost of $640 per day) and overhead expenses of $400 per day. Sandra processes and closes on 8 titles each day. The new computerized title-search system will allow the processing of 14 titles per day. Although the staff, their work hours, and pay are the same, the overhead expenses are now $800 per day.

a. Compute the labor productivity for the old and new systems and calculate the percent increase or decrease.

b. Compute the multifactor productivity for the old and new systems and calculate the percent increase or decrease.