Increase in productivity associated with process improvement

Assignment Help Microeconomics
Reference no: EM131799260

Question: A company has introduced a process improvement that reduces processing time for each unit, so that output is increased by 50% with less material, but one additional worker required. Under the old process, 7 workers could produce 60 units per hour. Labor costs are $12/hour, and material input was previously $20/unit. For the new process, material is now $ 14/unit. Overhead is charged at 1.8 times direct labor cost. Finished units sell for $37 each.

Answer each of the following questions:

1. Before the Process Improvement, the Multifactor Productivity?

2. After the Process Improvement, the Multifactor Productivity?

3. The increase in productivity associated with the process improvement?

Reference no: EM131799260

Questions Cloud

What is maximum amount of income that capitech should report : What is the maximum amount of income that Capitech should report from this investment for 2011
Describe the national labor relations act : Your company , fruit canners, inc., has recently become aware that the United Food and commercial Workers Union is attempting to convince employees.
What number of shares should be used in computing earnings : What number of shares should be used in computing basic earnings per share for the year ended December 31, 2011
Develop two questions per competency selected for use : Develop 2 questions per competency selected for use when interviewing candidates. Your final list of questions for the position will contain 10 questions.
Increase in productivity associated with process improvement : A company has introduced a process improvement that reduces processing time for each unit, so that output is increased by 50% with less material.
Compute the total selling expenses for the month : miscellaneous selling expenses are $2,101 plus 1/2 of 1% of sales. What are the total selling expenses for the month of January
What is the maximum amount of income that capitech report : What is the maximum amount of income that Capitech should report from this investment for 2011
Describe the new initiative and why it is important : Describe the new initiative and why it is important. Draft three questions for your team designed to gain buy-in and support of this new initiative.
Find the excess of cash available over disbursements : The desired ending cash balance is $40,000. The excess (deficiency) of cash available over disbursements for June will be

Reviews

Write a Review

Microeconomics Questions & Answers

  What other costs are involved in importing and exporting

How do countries use tariffs to increase revenues or protect industries - How do they affect exports?

  Describe both verbally and graphically how new writers

hollywood screenwriters negotiate a new agreement with movie producers stipulating that they will receive 10 of the

  Inefficient product market structures

Adolph Berle and Gardiner Means argued that widely held corporations will be run inefficiently by professional managers. Their argument is based on:

  What kinds of long-term benefits might a union gain

Does a strike for a raise of 5 cents an hour make any sense? What kinds of long-term benefits might a union gain from such a strike?

  Explain why the yield curve for lower quality bonds

Calculate both Macaulay and modified durations of the 8-year, 8.5% coupon bond given a flat yield curve at 10% and explain why zero coupon bonds have a higher Macaulay Duration than coupon paying bonds of the same return.

  Comparative advantage for mexico

During the debate over NAFTA, opponents argue that given the relative size of the two economies, the income gains resulting from the agreement would be smaller for the United States than for Mexico.

  Hospital system launching new diabetes program

What types of communication could be used for different generations - Create a 12- to 18-month communication strategy for your client.

  Define north korea missile program

What is the connection between North Korea's missile program and its hunger problem?

  What is the target fee for an overnight stay

Let us suppose that a hospital wants to set their fees for an overnight stay such that the contribution margin on a hospital room will be 35%.

  Calculate the cross elasticity of demand

During the past year, the average price of lots along Lake Michigan in Carol Beach rose from $2,500 to $3,000 per foot of lake front. At the same time, sales of new homes located off the Lake rose from 40 to 70 units. Calculate the cross elastici..

  How does the fact that many goods are nontrade affect extent

How does the fact that many goods are nontrade affect the extent of possible gains from trade? Extend your discussion from question 7 to explain this observation.

  Revitalize the housing market

Revitalize the Housing Market

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd