Question: 2) The Alpha Company manufactures electrical assemblies. The current process uses 10 workers and produces 250 units per hour. You are considering changing the process

2) The Alpha Company manufactures electrical assemblies. The current process uses 10 workers and produces 250 units per hour. You are considering changing the process with new assembly methods that increase output to 400 units per hour, but will require 15 workers. Particulars are as follows:

CURRENT PROCESS NEW PROCESS

OUTPUT (UNITS / HOUR) 250 400

NUMBER OF WORKERS 10 15

MATERIAL COST / HOUR $150 $175

Workers are paid at a rate of $10 per hour, and overhead is charged at 150% (or 1.5 times) labor costs. Finished switches sell for $20 / unit.

What is the multifactor productivity of current process.
What is the multifactor productivity of new process.
Based on your answer in a, b above, what decision should be made.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

The Abco Company manufactures electrical assemblies. The current process uses 10 workers and produces 200 units per hour. You are considering changing the process with new assembly methods that...

The Abco Company manufactures electrical assemblies. The current process uses 1 0 workers and produces 2 0 0 units per hour. \ table [ [ , CURRENT PROCESS ] , [ OUTPUT ( UNITS / HOUR ) , 2 0 0 ] , [...

productivity problem Scenario: The Abco Company manufactures electrical assemblies. The current process uses 10 workers and produces 200 units per hour. You are considering changing the process with...

I need to know how to do this productivity problem. explain step by step in detail how solve this problem. Scenario: The Abco Company manufactures electrical assemblies. The current process uses 10...

1) How has global competition affected productivity? 2) The Alpha Company manufactures electrical assemblies. The current process uses 10 workers and produces 250 units per hour. You are considering...

Q1answer?? 1) How has global competition affected productivity? 2) The Alpha Company manufactures electrical assemblies. The current process uses 10 workers and produces 250 units per hour. You are...

please I want this answer in details and computer writing not handwriting thank you 2) The Alpha Company manufactures electrical assemblies. The current process uses 10 workers and produces 250 units...

MBA 525 Spring 2021 Case Study #2 1) How has global competition affected productivity? 2) The Alpha Company manufactures electrical assemblies. The current process uses 10 workers and produces 250...

This is a Good Investment - Be Sure the Numbers Show That It Is! What should Oliver do? What would you do if you were Oliver? Would your answer change if you knew Mrs. Wilson had recently sold much...

What is the difference between initial margin and variation margin of a futures contract? Provide a simple example to explain your answer.

Peach was involved in an accident at work. She received $20,000 total for personal injuries and lost earnings. Based on the above facts and relevant tax laws, how should the $20,000 be treated for...

Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the company's products, a football helmet for the North American market, requires a special plastic. During the quarter...