A production operation is making 150 units of a product by engaging five workers for 300 hours. however, 40 percent of the units appear to have various quality problems, and the company decides to sell them as seconds at a price of 50 euros each when a normal unit is sold for 150 euros. what is the productivity of the company?

in an effort to improve the situation, a number of initiatives are proposed, including a scheme where for every improvement, 50 percent will be given to workers and the other 50 percent will be held by the company. this results in a significant drop in defects as now only 10 units are faulty out of an output of 130 units. what is the new productivity of the company, and what will be the earnings per hour of the workers under the bonus scheme if the cost per piece is 70 euros both before and after the scheme?

Answer rating: 100% (QA)

Revenue 150 x 60 x 150 Euros 150 x 40 x 50 Euros 16500 ... View the full answer