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 with less material, but two additional workers are required. Under the old process, six workers could produce units per hour in total. Labour costs are $hour and material input was previously $unit For the new process, material is now $unit Overhead is charged at times direct labour cost. Finished units sell for $ each. What increase in productivity is associated with the process improvement?
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