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, five 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. What increase in productivity is associated with the process improvement?
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