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
increase in output with less material, but it requires three additional workers. Under the old process,
seven workers could produce units per hour.
Labor costs are $hour Material input was
previously $unit and is $unit for the new process. Overhead is estimated to be times
direct labor cost.
Finished products sell for $ each.
Calculate the increase in productivity
associated with the process improvement.
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