Question: A company has introduced a process improvement that reduces processing time for each unit, so that output is increased by 35% with less material, but

A company has introduced a process improvement that reduces processing time for each unit, so that output is increased by 35% with less material, but one additional worker required. Under the old process, 7 workers could produce 70 units per hour. Labor costs are $12/hour, and material input was previously $19/unit. For the new process, material is now $13/unit. Overhead is charged at 1.8 times direct labor cost. Finished units sell for $40 each. Answer each of the following questions: Before the Process Improvement, the Multifactor Productivity =

( Answer with 3 decimal places x.xxx) After the Process Improvement, the Multifactor Productivity =

(Answer with 3 Decimal Places x.xxx) The increase in productivity associated with the process improvement =

% (Answer is a whole number xx)

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