A furniture manufacturing company working on a 40 hour per week basis makes 100 chairs. The...

  

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A furniture manufacturing company working on a 40 hour per week basis makes 100 chairs. The sales price is €70 each, and the company has the following costs: Direct materials €700 Direct labor €300 • Overhead €500 a) Calculate the productivity of the company. b) What will be the new productivity if the company decides to make 135 chairs per week? c) If the company decides to improve productivity through materials costs reduction only, how much these costs must be reduced in order to achieve a 10 percent increase in total productivity? d) If the company repeats the same exercise as in (c) above, but through labour costs reduction, how much these costs must be reduced in order to achieve a 10 percent increase in total productivity? A furniture manufacturing company working on a 40 hour per week basis makes 100 chairs. The sales price is €70 each, and the company has the following costs: Direct materials €700 Direct labor €300 • Overhead €500 a) Calculate the productivity of the company. b) What will be the new productivity if the company decides to make 135 chairs per week? c) If the company decides to improve productivity through materials costs reduction only, how much these costs must be reduced in order to achieve a 10 percent increase in total productivity? d) If the company repeats the same exercise as in (c) above, but through labour costs reduction, how much these costs must be reduced in order to achieve a 10 percent increase in total productivity?

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ANSWER Gven data woking howy WD lwo of chairy 100 por 40 houwy week t ... View the full answer