a. Compute the multifactor productivity for each location. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Location 1 Location 2 Location 3 S $ $ 21 57 orders per dollar 20.14 orders per dollar 20 98 orders per dollar b. Which location should be chosen? Location 1

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A company is deciding which of three locations to choose for a new mail-order sorting facility. The table below shows each location's
labor cost and overhead rate per hour.
The new facility is expected to process 310 orders per hour with 2 workers per 8-hour shift.
Costs
Overhead ($/hr)
Labor
Location 1
Location 2
Location 3
$
$
Location 1
4.37
10.02
($/hr/person)
a. Compute the multifactor productivity for each location. (Do not round intermediate calculations. Round your final answers to 2
decimal places.)
$
Location 2
5.49
9.9
21.57 orders per dollar
20.14 orders per dollar
20 98 orders per dollar
b. Which location should be chosen?
Location 1
Location 3
5.02
9.75
Transcribed Image Text:A company is deciding which of three locations to choose for a new mail-order sorting facility. The table below shows each location's labor cost and overhead rate per hour. The new facility is expected to process 310 orders per hour with 2 workers per 8-hour shift. Costs Overhead ($/hr) Labor Location 1 Location 2 Location 3 $ $ Location 1 4.37 10.02 ($/hr/person) a. Compute the multifactor productivity for each location. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) $ Location 2 5.49 9.9 21.57 orders per dollar 20.14 orders per dollar 20 98 orders per dollar b. Which location should be chosen? Location 1 Location 3 5.02 9.75
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