Question: A company has introduced a process improvement that reduces processing time for each unit, so that output is increased by 3 0 % with less

A company has introduced a process improvement that reduces processing time for each unit, so that output is increased by 30% with less material, but two additional workers are required. Under the old process, six workers could produce 70 units per hour in total. Labour costs are $12/hour, and material input was previously $16/unit. For the new process, material is now $10/unit. Overhead is charged at 1.6 times direct labour cost. Finished units sell for $31 each. What increase in productivity is associated with the process improvement?

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