Gibson labor hour efficiency

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Reference no: EM131430138

Gibson's Bodywork does automotive collision work. An insurance agency has determined that the standard time to replace a fender is 2.5 hours (I.e.,"standard output" = 0.4 fenders per hour) and is willing to pay Gibson $50 per hour for labor party. Gibson pays its workers $35 per hour. Suppose Gibson's workers take 4 hours to replace a fender.

A. Gibson labor hour efficiency is ?

B. Gibson's labor hour efficiency has to be ----% for Gibson to break even on the job.

Reference no: EM131430138

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