A production operation is making 150 pieces of a product by engaging 5 workers for 300 hours. However, 40% of the units appear to have various quality problems and the company decides to sell them as seconds at a price of €50 each when the normal unit is sold for €150 each. What is the productivity of the company? In an effort to improve the situation, a number of initiatives were proposed, including a scheme where, for every improvement, 50% will be given to workers and the other 50% will be held by the company.

This results in a significant drop in defects as now only 10 units were faulty out of an output of 130 units. What is the new productivity of the company, and what will be the earnings per hour of the workers under the bonus scheme if the cost per unit is €70 both before and after the scheme?