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A pharmaceutical company is considering introducing Halsey Premium or Rowan (Plan of incentives scheme for their employees. The standard time of production is 10 hours and the Hourly rate is Rs. 100. In order to carry out a comparative study that which of the two incentive plans is cost effective for payment of wages to workers, the company estimates that the time taken for production of a Batch may be 9 Hours, 8 Hours and 7 Hours.
Required:
Problem 1: Advise the company for adopting suitable incentive plan supported by workings and total labor cost per Hour under each incentive plan of Halsey Premium and Rowan.
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