Question: A company has introduced a process improvement that reduces processing time for each unit, so that output is increased by 2 5 % with less
A company has introduced a process improvement that reduces processing time for each unit, so that output is increased by with less material, but one additional worker required. Under the old process, workers could produce units per hour. Labor costs are $ hour, and material input was previously $ unit. For the new process, material is now $ unit. Overhead is charged at times direct labor cost. Finished units sell for $ each.
Answer each of the following questions:
Before the Process Improvement, the Multifactor Productivity
A Answer with decimal places
After the Process Improvement, the Multifactor Productivity
A Answer with Decimal Places
The increase in productivity associated with the process improvement
A Answer is a whole number
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