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A firm has obtained a productivity index of 115.5% meaning labor costs would be increased by 15.5% if it did not have these productivity improvements.
A firm has obtained a productivity index of 115.5% meaning labor costs would be increased by 15.5% if it did not have these productivity improvements. This is a competitive advantage that it can sustain or even widen further if its competitors have no HR initiatives. Refer to the income statement below.How much did this firm's productivity improvements save it in direct labor costs last year (remember that the income statement shows numbers in 000s)?
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