Question: A. Calculate the labour productivity for the current process. B. Calculate the labour priductivity for the new process. Electro Tech Inc. manufactures electrical assemblies. The
Electro Tech Inc. 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 increase output to 300 units per hour but will require 14 workers. Particulars are as follows: Electro Tech pays workers $10 per hour, and overhead is charged at 140% (or 1.4 t imes) of labour costs. Finished switches sell for $20 /unit
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
