A company is deciding which of three locations to choose for a new mail-order sorting facility. The table below shows eachlocation'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.CostsLocation 14.4710.21Location 1Location 2Location 3Location 23.6310Overhead ($/hr)Labor($/hr/person)a. Compute the multifactor productivity for each location. (Do not round intermediate calculations. Round your finalanswers to 2 decimal places.)orders per dollarorders per dollarorders per dollarb. Which location should be chosen?Location 34.0610.4< Prev18 of 60Next

Location 1Location 2Location 3Output (per hr)460460460Overhead (per hr)4.473.634.06Labor (Per hr per…

Answered: Overhead ($/hr) Labor 4.47 10.21…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

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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?