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5. [10 points) 3M manufactures N95 respirators. After COVID-19 pandemic, 3M ramped-up the production to meet the increased demand. Following table shows the production statistics.
5. [10 points) 3M manufactures N95 respirators. After COVID-19 pandemic, 3M ramped-up the production to meet the increased demand. Following table shows the production statistics. Before COVID 19 (per month) After COVID-19 (per month) Units produced 35 million 50 million Labor cost $15 million $20 million Material cost $10 million $15 million Capital costs $5 million $10 million a. What is the productivity before COVID-19? Show calculations to earn credit. b. What is the productivity after COVID-19? Has the productivity increased or decreased? c. What is the percentage of productivity change? Show calculations to earn credit. d. 3M has decided not to change the selling price of N95 respirators. Wht can you predict about the profits on N95 respirators? Explain your reasoning
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