9- George Bean works 40 hours a week at the Yahoo Yoghurt Company, which is known for
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9- George Bean works 40 hours a week at the Yahoo Yoghurt Company, which is known for its exotic flavors, such as Classic Coffee and Crazy Kiwi. George is paid on a 75 percent gain sharing plan, with bonus earnings beginning at standard. The base wage for his job is $8.10 per hour, and the standard is 38 units per hour.
a. What is George’s weekly (40 hours) pay if he works at standard, and what is the company’s labor cost per unit?
b. What is George’s weekly pay if he produces 1,875 units in the 40 hours? What is the labor cost per unit at this production rate?
c. Which labor cost per unit is better for George? Which is better for the company?
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Related Book For
Operations Management Providing Value In Goods And Services
ISBN: 9780030262074
3rd Edition
Authors: Dilworth, James B
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