Question
Gibson's Bodywork does automotive collision work. An insurance agency has determined that the standard time to replace a fender is 0.16 hours (i.e., standard output=6.25
Gibson's Bodywork does automotive collision work. An insurance agency has determined that the standard time to replace a fender is 0.16 hours (i.e., "standard output"=6.25 fenders per hour) and is willing to pay Gibson $30 per hour for labor (parts and supplies are billed separately). Gibson pays its workers $55 per hour. Suppose Gibson's workers take 7 hours to replace a fender.
a. Gibson's labor hour efficiency is_________%. (Enter your response rounded to two decimal places.)
Given Gibson's labor costs, the company________ make money on the job.
a. will not
b. will
b. Gibson's labor hour efficiency has to be_______% for Gibson to break even on the job. (Enter your response rounded to two decimal places.)
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