Question: A factory employs 5 0 workers, each paid a basic hourly rate of R 5 5 . 0 0 for a 3 5 - hour

A factory employs 50 workers, each paid a basic hourly rate of R55.00 for a 35-hour working week. Overtime is paid at R75.00 per hour. It takes each employee 3 hours to produce one unit of the sole product. On average, employees work 4 hours of overtime per week.
Management is considering automating part of the production process, which will reduce the unit production time by 30 minutes. It is expected that with the new system, overtime will no longer be required.
REQUIRED:
What would be the effect of the new system on the labour cost per unit?
A. R23.07 increase
B. R33.65 decrease
C. R23.07 decrease
D. R33.65 increase
A factory employs 5 0 workers, each paid a basic

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