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Overhead ($/hr) Labor 4.47 10.21 Location 1 Location 2 Location 3 ($/hr/person) a. Compute the multifactor productivity for each locatic answers to 2 decimal places.) 3.63 10 orders per dollar orders per dollar orders per dollar b. Which location should be chosen?

Overhead ($/hr) Labor 4.47 10.21 Location 1 Location 2 Location 3 ($/hr/person) a. Compute the multifactor productivity for each locatic answers to 2 decimal places.) 3.63 10 orders per dollar orders per dollar orders per dollar b. Which location should be chosen?

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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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 460 orders per hour with 4 workers per 8-hour shift. Costs Location 1 4.47 10.21 Location 1 Location 2 Location 3 Location 2 3.63 10 Overhead ($/hr) Labor ($/hr/person) a. Compute the multifactor productivity for each location. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) orders per dollar orders per dollar orders per dollar b. Which location should be chosen? Location 3 4.06 10.4 < Prev 18 of 60 Next
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 460 orders per hour with 4 workers per 8-hour shift. Costs Location 1 4.47 10.21 Location 1 Location 2 Location 3 Location 2 3.63 10 Overhead ($/hr) Labor ($/hr/person) a. Compute the multifactor productivity for each location. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) orders per dollar orders per dollar orders per dollar b. Which location should be chosen? Location 3 4.06 10.4 < Prev 18 of 60 Next
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