Question: Styles BSE 2510 Homework Week 7 Operations Management [4] #6 PA page 67: A hamburger factory produces 60,000 hamburgers each week. The equipment used costs

Styles BSE 2510 Homework Week 7 Operations
Styles BSE 2510 Homework Week 7 Operations Management [4] #6 PA page 67: A hamburger factory produces 60,000 hamburgers each week. The equipment used costs $10,000 and will remain productive for 4 years. The labor cost per year is $13,500. a) What is the productivity measure of "units of output per dollar of input" averaged over the four-year period? b) 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)

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