Merrifield Post Office is evaluating the productivity of its mail processing centers

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Merrifield Post Office is evaluating the productivity of its mail processing centers. The centers differ in the degree of automation, the type of work that can be performed, and the skill of the workers.

Center                        1          2           3

Pieces Processed/hr 1,000    2,000    3,000

No. of workers/hr       10         5         2

Hourly wage rate       5.5       10        12

Overhead Rate           10        25        50

1. Which center is the most productive ?

2. Workers in Center 1 are scheduled to recieve a 10% pay raise next month. How will that affect productivity ?

3. A new processing machine is available for Center 3 would increase the output to 5,000 peices an hour at an additional overhead rate of $30 an hour. Should Merrifield install the new processing machine?

A.	Center 1
B.	Yes, install the new equipment.
C.	Center 2
D.	Center 3
E.	Productivity will go down
F.	Productivity will go up
G.	No, do not install the new equipment.