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Answer the following questions: Premier Production Sdn. Bhd. seeks to evaluate its existing level of productivity. To boost productivity, the organization is considering implementing
Answer the following questions: Premier Production Sdn. Bhd. seeks to evaluate its existing level of productivity. To boost productivity, the organization is considering implementing a new system. The existing system can produce 5000 units with its current facilities, which cost RM1,000 in materials, RM400 in capital, and RM100 in overheads. While the suggested system capacity would raise the number of outputs to 1,500 units, the cost will remain the same (300 labour hours). Other measurements are unchanged. a. Using the single and multiple factor productivity measurement, what is the productivity level of Premier Production Sdn. Bhd based on labour hour? (8 marks) b. What is the rate of increase in productivity (current and new system)? (2 marks)
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