What is increase in productivity due to process improvement

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A manufacturing industry has introduced a process improvement that reduces processing time of each unit of the product. As a result of the process improvement, the output has increased by 25% with less material but one additional worker is required. under the old process, five workers were able to produce a total of 80 units per hour. labor cost is for old and new process are 15$ per labor hour. Material input for the old process was 16$ per unit but for the new process its 12$ per unit. for old and new process overhead charges at 1.6 times the labor cost. under the old process finished product sold for 30$ each and because of quality improvement finished products under the improved process sold for 35$ each. use total unit produced per hour and total resources used per hour to compare productivity for old and new process. What is the percentage increase in productivity due to process improvement?

Reference no: EM131033814

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