Calculate percentage changes in labor and truck productivity

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1. A machine has an initial purchase cost of $2,500,000, a trade-in value equal to 20% of its initial cost at the end of 12 years, and an operating cost of $125 per unit produced. Assuming that the machine will be used to produce 2,500 units per year and a real cost of capital of 4% compounded annually, what is the cost per unit?

2. A company used 5 trucks and 10 workers working 160 hours each and 5 trucks to service 640,000 calls for repaid in 2016. In 2017, the company used 4 trucks and 8 workers working 210 hours each month to handle 720,000 calls for repair. Find the labor and the truck productivity for reach year (Be sure to specify units). Calculate the percentage changes in the labor and the truck productivity.

3. The cost of trucks is $4,000 per month and $3 per hour. The labor cost of workers is $15 per hour for the first 160 hours during a month and $22.50 per hour for each additional hour worked over and above the 160 hours during the month. Find the percent change in overall productivity?

Reference no: EM132227332

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