Question: l 7. A company has introduced a process improvement that reduces processing time for each unit; output is increased by 10 percent with less material,

7. A company has introduced a process improvement that reduces processing time for each unit; output is increased by 10 percent with less material, but two additional workers are required. Under the old process, four workers could produce 50 units per hour. Labor costs are $12/hour, and material input was previously $18/unit. For the new process, material is now $12/unit. Overhead is charged at 1.5 times direct labor cost. Finished units sell for $25 each. What increase in productivity is associated with the process improvement

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