Solve the question, show your work on the calculations. Both questions are part of one assingment.

1. (25 points) A hotdog factory produces 60,000 hotdogs each week. The equipment used costs $10,000 and will remain productive for 4 years. The labor cost per year is $13,500. What is the productivity measure of "units of output per dollar of input averaged over the four-year period? Hint: Productivity = total units produced divided by the total labor cost plus total equipment cost We have the option of $13,000 equipment, with an operating life of 5 years. It would reduce labor costs to $11,000 per year. Should we consider purchasing this equipment (using productivity arguments alone)? 2. (25 points) Briefly summarize the key issues that managers face with global value chains in comparison with domestic value chains. Discuss at least three issues