SECTION B [60 MARKS] Answer ANY THREE (3) questions in this section QUESTION 2 (20 Marks)

TTCA Furniture a manufacturing company working on a 4-hour week makes 100 chairs. The sales price is R70 each and the company has the following costs: Direct materials R700 Direct labour R300 Overhead R500

2.1 Calculate the productivity of the company. (4 marks) 2.2 What will be the new productivity if the company decides to make 135 chairs per week? (4 marks) 2.3 If the company decides to improve productivity through materials cost reduction only, by how much should these costs be reduced to achieve a 10% increase in total productivity? (6 marks) 2.4 If the company repeats the same exercise as in (c) above but through labour cost reduction only, by how much should these costs be reduced to achieve at 10% increase in total productivity?