Partis Efiective cost perhour

$1$ shift $(8$ hours$)$ per day

$9$ holidays

$10$ vacation days

Fringer $38\%$ of base wage

Base hourly wages $$22\mathrm{.}50$ per hour

$30$ minute lunch $($paid$)$ plus two $15$ minute breaks $($paid$)$ per day

What is the effective cost per hour per employee? Show you work for all the steps:

Part lla Resuction in labor cost

Using the calculations from above

Assume $305,025$ hours of work needed every year

Assume current productivity is $70\%$

Project proposed to increase productivity from $70\%$ to $80\%$ that requires a capitalinvestment of $$4\mathrm{.}0$ million.

Note: for the purposes of this exercise you can show partial workers ex $323.$

How many team members are required to meet the $305,025$ annual hours of work at the current $70\%$ productivity?

What is the total dollar change in labor expense from this increase in productivity from $70\%$ to $80\%?$

If the company has set a payback hurcle of $2$ years $($not discounted cash flow$)$ will this investment meet that hurdle? If not, what percent labor efficiency is required to hit that hurdle rounded to the nearest whole $\%$: