Chapter #$2-$ Strategic Planning Total $=10$ Marks

Using the following information, answer questions from

$17$ to $23$

Note: $-$ Round answers to $2$ decimal places.

Adding a new lathe machine into the manufacturing process,

a company reduced processing time for each unit so that

outout is increased bv $25\%$ with less material but needed to

add one skilled worker to operate the machine. Under the old

process, five workers could produce $60$ units per hour. Labor

costs are $$12/$hour and material input were previously

$$16/$unit$.$ For the new process, the material now is $$10/$unit$.$

Overhead is charged at $1\mathrm{.}6$ times the direct labor cost.

Finished units sell for $$31$ each.

Quaction $17/4$ maint$)$

Cavod

How much is the new output?

O an units ner hour

O $75$ units ner hour

O $55$ units ner hour

$025$ units ner hour