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The Abco Company manufactures electrical assemblies. The current process uses 10 workers and produces 200 units per hour. You are considering changing the process with

The Abco Company manufactures electrical assemblies. The current process uses 10 workers and produces 200 units per hour. You are considering changing the process with new assembly methods that increase output to 300 units per hour, but will require 14 workers. Particulars are as follows: OUTPUT (UNITS / HOUR) NUMBER OF WORKERS MATERIAL COST / HOUR CURRENT PROCESS 200 10 $120 Workers are paid at a rate of $10 per hour, and overhead is charged at 140% (or 1.4 times) labor costs. Finished switches sell for $20 / unit. greater than 8.0 but less than or equal to 10.0 Use the information provided in Table 1.2. What is the multifactor productivity of the new process? greater than 10.0 but less than or equal to 12.0 less than or equal to 8.0 NEW PROCESS greater than 12.0 300 14 $150
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The Abco Company manufactures electrical assemblies. The current process uses 10 workers and produces 200 units per hour. You are considering changing the process with new assembly methods that increase output to 300 units per hour, but will require 14 workers. Particulars are as follows: Workers are paid at a rate of $10 per hour, and overhead is charged at 140% (or 1.4 times) labor costs. Finished switches sell for $20/ unit. Use the information provided in Table 1.2. What is the multifactor productivity of the new process? greater than 8.0 but less than or equal to 10.0 greater than 10.0 but less than or equal to 12.0 less than or equal to 8.0 greater than 12.0 Table 1.2 The Abco Company manufactures electrical assemblies. The current process uses 10 workers and produces 200 units per hour. You are considering changing the process with new assembly methods that increase output to 300 units per hour, but will require 14 workers. Particulars are as follows: Workers are paid at a rate of $10 per hour, and overhead is charged at 140% (or 1.4 times) labor costs. Finished switches sell for $20/ unit. Use the information provided in Table 1.2. What is the multifactor productivity of the new process? greater than 8.0 but less than or equal to 10.0 greater than 10.0 but less than or equal to 12.0 less than or equal to 8.0 greater than 12.0

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