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:

	Current Process	New Process
Outputs (Unit/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 140% (or 1.4 times) labor costs. Finished switches sell for $20 / unit.

Use the information provided above. What is the multifactor productivity of the new process? (output is measured by its value)

		less than or equal to 8.0
		greater than 12.0
		greater than 8.0 but less than or equal to 10.0
		greater than 10.0 but less than or equal to 12.0

Use the information provided above. Based on your productivity calculations, what decision should you make?

		stay with the current process
		shut down the plant
		either process is acceptable (since the multi-factor productivities are the same).
		implement the new process