Question: A production operation requires 6 workers to work for a combined total of 360 hours to make 180 pieces of a product. Each piece is

A production operation requires

6

workers to work for a combined total of

360

hours to make

180

pieces of a product.

Each piece is priced at

170.

However,

45%

of the pieces appear to have various quality issues. The company sells these as seconds, at a price of

70

each.

To improve the quality of production, a bonus scheme is introduced:

50% of the additional earnings brought about by quality improvement will be given to the workers

50% of the additional earnings brought about by quality improvement will be held by the company

As a result, the quality-control department noted a significant drop in defects. Out of a total of

150

pieces produced, only

20

were found to be defective. The cost per piece remains the same at

80.

Before the bonus scheme was announced, the labor productivity of the company was

nothing/h.

(Enter your response rounded to three decimal places.)

After the bonus scheme was announced, the labour productivity of the company was:

$nothing (Enter your resposne)

The earnings pr hour of the workers under the bonus scheme amount to:

nothing

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