Business, 12.02.2020 04:38 janyiareese12
A company has introduced a process improvement that reduces processing time for each unit, so that output is increased by 25% wtih less material, but one additional worker required. Under the old process, five workers could produce 60 units per hour. labor costs are $12/hour, material input was previously $16/unit. For the process, material is now $10/unit. Overhead is charged at 1.6 times direct labor cost. Finished units sell for $31 each. What increase in productivity is associated with the process improvement?
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