Question: A. Gibson labor hour efficiency is ----? Given Gibson's labor cost, the company -(will/will not)- make money on the job? B. Gibson's labor hour efficiency

A. Gibson labor hour efficiency is ----? Given

A. Gibson labor hour efficiency is ----?

Given Gibson's labor cost, the company -(will/will not)- make money on the job?

B. Gibson's labor hour efficiency has to be ----% for Gibson to break even on the job.

Gibson's Bodywork does automotive collision work. An insurance agency has determined that the standard time to replace a fender is 2 hours (i.e., "standard output" = 0.5 fenders per hour) and is willing to pay Gibson $45 per hour for labor (parts and supplies are billed separately). Gibson pays its workers $40 per hour. Suppose Gibson's workers take 9 hours to replace a fender. a. Gibson's labor hour efficiency is %. (Enter your response rounded to two decimal places.)

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!