# Question: The ABC Company has a large order for special uniforms

The ABC Company has a large order for special uniforms to be used in an urgent operation. Working the normal two shifts of 40 hours each per week, the ABC production process usually produces 2, 500 uniforms per week at a standard cost of $120 each. Seventy employers work the first shift and 30 the second. The contract price is $200 per uniform. Because of the urgent need, ABC is authorized to sue around-the-clock production, six days per week. When each of the two shifts work 72 hours per week, production increases to 4,000 uniforms per week but at a cost of $144 each.

i. Did the multifactor productivity ratio increase, decrease, or remain the same? If it changed, by what percentage did it change?

ii. Did the labor productivity ratio increase, decrease, or remain the same? If it changed, by what percentage did it change?

iii. Did weekly profits increase, decrease, or remain the same?

i. Did the multifactor productivity ratio increase, decrease, or remain the same? If it changed, by what percentage did it change?

ii. Did the labor productivity ratio increase, decrease, or remain the same? If it changed, by what percentage did it change?

iii. Did weekly profits increase, decrease, or remain the same?

**View Solution:**## Answer to relevant Questions

Are some stocks less sensitive to market/systematic factors (recession, depression, war, etc.) than others? Provide some examples.Is there a measure that may allow us to evaluate this? How would we use it?The factors that ...Suppose that you can schedule a worker up to four hours per day. The benefit function is given by B(H) = 500H – 22.5H2 and the cost function is given by C(H) = 100 + 15H2. The corresponding marginal benefit and marginal ...Describe the importance of promotional strategies as one of the basic elements of the marketing mixSuppose a consumer’s utility function is given by U(X, Y) = X*Y. Also, the consumer has $32 to spend, and the price of X, PX = 4, and the price of Y, PY = 1.(a) How much X and Y should the consumer purchase in order to ...A ball with mass m kg is thrown upward with initial velocity 12m/sec from the roof of a building 16m high. Find the maximum height above the ground that the ball reaches. Assuming that the ball misses the building on the way ...Post your question