Qinushi sells packaged sushi to local convenience store

Qinushi sells packaged sushi to local convenience stores in Japan. The firm purchases 1400 kilos of
raw fish and using its current equipment produces
12 sushi meals per kilo. The firm has 100 workers
averaging 5 hours per day at a total cost of
700000 yen including overheads.Ming Sung the production manager is considering investing in new equipment which should reduce
waste and so increase production to 15 sushi meals
per kilo but pushes the total cost per day to
1200000 yenRequred
a) What is the current labour productivity (meals perhour)?
b) What will the impact on labour productivity be
(meals per hour) if the equipment is purchased?
c) What is the multi-factor productivity (meals per yen)
of the current system?
d) What would the new multi-factor productivity be?
e) What would you advise Ming to do? Qinushi sells packaged sushi to local convenience stores in Japan. The firm purchases 1400 kilos of
raw fish and using its current equipment produces
12 sushi meals per kilo. The firm has 100 workers
averaging 5 hours per day at a total cost of
700000 yen including overheads.Ming Sung the production manager is considering investing in new equipment which should reduce
waste and so increase production to 15 sushi meals
per kilo but pushes the total cost per day to
1200000 yenRequred
a) What is the current labour productivity (meals perhour)?
b) What will the impact on labour productivity be
(meals per hour) if the equipment is purchased?
c) What is the multi-factor productivity (meals per yen)
of the current system?
d) What would the new multi-factor productivity be?
e) What would you advise Ming to do?
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