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A company has introduced a process improvement that reduces processing time for each unit, so that output is increased by 25% with less material, but one additional worker required. Under the old process, five workers could produce 60 units per hour. Labour costs are $12/hour, and material input was previously $16/unit. For the new process, material is now $10/unit. Overhead is charged at 1.6 times direct labour cost. Finished units sell for $31 each. What is the productivity AFTER the process improvement (in $ of output / $ of input)?
Question 19 Select one:
a.
1.667
b.
1.913
c.
2.481
d.
2.571
e.
None of the given choices

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