Productivity and productivity growth

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Productivity and Productivity Growth

A crew size of four workers installed 720 square yards of carpeting in eight hours. Each worker is paid $20/hour.

What was the labor productivity (in square yards per labor hour)?

What was the capital productivity (in square yards per dollar)?

For parts c and d, the company is considering the purchase of new equipment that will change how carpet is installed. Installation will be done in crews of three workers and it’s expected they can install 600 square yards of carpeting in eight hours.

What is the new labor productivity (in square yards per labor hour)?

What is the labor productivity growth if the new equipment is purchased?

Reference no: EM132304779

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