Question: 2-A company has introduced a process improvement that reduces processing time for each unit, so that output, which had been at 80 units per hour,
2-A company has introduced a process improvement that reduces processing time for each unit, so that output, which had been at 80 units per hour, increases by 25%. The cost for material per unit of output has dropped from $20 per unit of output to $10 per unit of output. Labor costs have remined constant at $15 per worker per hour. However, the new process requires seven workers, which is two more than needed previously. Overhead is charged at 1.6 times direct labor cost. Finished units sell for $40 each. a) What is the labor productivity (in units/Worker/hour) after the process Improvement? (Round to 2 decimal places)
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