Question: Adding a new lathe machine into the manufacturing process, a company reduced processing time for each unit so that output is increased by 2 5
Adding a new lathe machine into the manufacturing process, a company reduced processing time for each unit so that output is increased by with less material but needed to add one skilled worker to operate the machine. Under the old process, five workers could produce units per hour. Labor costs are $hour and material input were previously $unit For the new process, the material now is $unit Overhead is charged at times the direct labor cost. Finished units sell for $ each. What will be the productivity growth be if the number of workers remains the same, workers, in both old and new situations material cost remains unchanged as per the original statement?
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