The ABC Company 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 in Table 1 as follows:

CURRENT PROCESS NEW PROCESS

OUTPUT (UNITS / HOUR) 200 300

NUMBER OF WORKERS 10 14

MATERIAL COST / HOUR $120 $150

Workers are paid at a rate of $10 per hour, and overhead is charged at 150% (or 1.5 times) labor costs. Finished switches sell for $20/unit.

Please answer the following questions.

a. Calculate the multifactor productivity for the current process.

b. Calculate the multifactor productivity for the new process.

c. Calculate the increase/decrease of productivity (in percentage). Determine if the new process should be implemented.

Please type answers in computation steps. Thank you.