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A garden tools manufacturing industry recently purchased and installed some new equipment to reduce the labor hours of the jobs needed to produce the garden tools at various production units.Prior to buying the new equipment, the company used to employ 8 workers in units that used to produce an average of 32 shovels per hour. Workers receive $12 per hour and overhead cost was$40 per hour.With the new equipment, it was possible to transfer one of the workers to another production unit, and the overhead cost increased by $10 per hour, while output increased by 8 shovels per hour.1. Compute unit production cost before and after purchasing the new equipment.Production Cost Before: 12 * 8 = 96 +40 = $136 Per HourProduction Cost After: 12 * 7 = 84 + 50 = $134 Per Hour(Is this correct?)2. Compute the multifactor productivity before and after purchasing the new equipment. Use labor cost and overhead cost to derive multifactor productivity.Productivity Before New Equipment:Productivity After New Equipment: 3. Compute and comment on the change of labor productivity and production improvement before and after purchasing the new equipment.4. Comment on these changes in productivity according to the two measures (before and after purchasing the new equipment).5. Comment on whether or not it is worth buying new equipment considering the productivity improvement and investment.Can you provide the formulas to get to these answers please?


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