Question: A company has introduced a process improvement that reduces processing time for each unit so that output is increased by 25% with less material, but

A company has introduced a process improvement that reduces processing time for each unit so that output is increased by 25% with less material, but one additional worker required. Under the old process, five workers could produce 60 units per hour. Labor costs are $12/hour, and material input was previously $16/unit. For the new process, the material is now $10/unit. Overhead is charged at 1.6 times direct labor cost. Finished units sell for $31 each. What increase in productivity is associated with the process improvement?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

The manager of a carpet store is trying to determine optimal installation crew size. He has tried various crew sizes with the results shown below. Compute the average labour productivity for each...

GOT7 company has introduced a process improvement that reduces processing time for each unit, so that output is increased by 25% with less material, but one additional worker required. Under the old...

Mahmoudco Fizzy Drinks had the following demand schedule for its products over the past months: Period Demand January 7300 February 7450 March 7250 April 7500 May 7970 June 8000 July 8200 August a....

A company has introduced a process improvement that reduces processing time for each unit, so that output is increased by 25% with less material, but one additional worker required. Under the old...

John Lucy makes wooden boxes in which to ship motorcycles, John and his three employees invest a total of 40 hours per day making the 120 boxes. a) What is their productivity? b) John and his...

A company has introduced a process improvement that reduces processing time for each unit, so that output is increased by 2 5 % with less material, while 1 additional worker is required. Under the...

i need help for this question please A company has introduced a process improvement that reduces processing time for each unit, so that output is increased by 25% with less material, but one...

A company has introduced a process improvement that reduces processing time for each unit, so that output is increased by 2 5 % with less material, but one additional worker required. Under the old...

Computer directly the gravitational force on a unit mass at a point exterior to a homogeneous sphere of matter

Give the molecular formula for each of the following structural formulas. a. b. c. d. H-N-N-H hydrazine H-o-o-H hydrogen peroxide H-C-C-C-H H O H isopropyl alcohol Cl CI- P CI phosphorus trichloride

The Randolph Company balance sheet shows the following items: accounts payable totaling $ 5 0 , 0 0 0 ; salaries payable totaling $ 9 5 , 0 0 0 ; and notes payable totaling $ 1 0 0 , 0 0 0 . These...

atch the compensation objectives with their meanings. Efficiency Efficiency drop zone empty. Fairness Fairness drop zone empty. Compliance Compliance drop zone empty. Improving performance and...