Question: The Populus Tremula Plant has just implemented a process improvement, which resulted 2 0 % increase in output with less material, but it requires three

The Populus Tremula Plant has just implemented a process improvement, which resulted 20%
increase in output with less material, but it requires three additional workers. Under the old process,
seven workers could produce 60 units per hour.
Labor costs are $30/hour. Material input was
previously $25/unit and is $20/unit for the new process. Overhead is estimated to be 1.2 times
direct labor cost.
Finished products sell for $45 each.
Calculate the increase in productivity
associated with the process improvement.

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