Question: The Abco Company manufactures electrical assemblies. The current process uses 10 workers and produces 200 units per hour. You are considering changing the process with

 The Abco Company manufactures electrical assemblies. The current process uses 10

The Abco 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 as follows: Workers are paid at a rate of $10 per hour, and overhead is charged at 140% (or 1.4 times) labor costs. Finished switches sell for $20/ 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

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