Question: Consider the example of the three-step airport security. The first step, verifying ID and boarding pass, takes 30 seconds per passenger. The second step, searching
Consider the example of the three-step airport security. The first step, verifying ID and boarding pass, takes 30 seconds per passenger. The second step, searching the passenger for metal objects using a metal detector, takes 10 seconds per passenger. The third step, running the carry-on luggage through an X-ray machine, takes 60 seconds per passenger. Assume that there are many customers waiting in the process and that each of the three employees gets paid $15 per hour.
(a) What is the cost of direct labor?
(b) What is the labor content?
(c) What is the average labor utilization?
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