Assignment task: A hamburger factory produces 55,000 hamburgers each week. The equipment used costs $10,000 and will remain productive for three years. The labor cost per year is $10,000.
What is the productivity measure of "units of output per dollar of input" averaged over the three-year period? Assume that there are 52 weeks per year. Round your answer to one decimal place.
Productivity: hamburgers/dollar
We have the option of $13,000 equipment, with an operating life of four years. It would reduce labor costs to $7,500 per year. Should we consider purchasing this equipment (using productivity arguments alone)? Assume that there are 52 weeks per year. Round your answer for productivity to one decimal place.
For the expensive machine, productivity is hamburgers/dollar input. Because the productivity of the expensive machine is -Select-higherlowerItem 3 , it would be a -Select-goodbadItem 4 investment based on this single criteria