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A hamburger factory produces 40,000 hamburgers each week. The equipment used costs $5,000 and will remain productive for 4 years. The labor cost per year is $9,500. a. What is the productivity measure of "units of output per dollar of input" averaged over the 3-year period? b. We have the option of $10,000 equipment, with an operating life of 5 years. It would reduce labor costs to $6,000 per year. Should we consider purchasing this equipment (using productivity arguments alone)?
Henderson Furniture sells reproductions of 18th century furniture. For a particular table, the following information is valid. Month | Demand Jan 81 Feb 89 Mar 100 Apr 130 May 97 J
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