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The XYZ Pharmaceuticals Company specializes in producing a vital medication. The current manufacturing process involves a team of 1 0 skilled chemists working diligently to
The XYZ Pharmaceuticals Company specializes in producing a vital medication. The current manufacturing process involves a team of skilled chemists working diligently to produce units of the medication per hour. You are contemplating a process upgrade by implementing advanced synthesis techniques that can boost the production rate to units per hour, but would necessitate a team of chemists. Here are the details: CURRENT PROCESSNEW PROCESSOutput Units HourNumber of ChemistsMaterial Cost Hour$$Chemists are paid at a rate of $ per hour, and overhead is charged at or times labor costs. The medication sells for $ unit.A What is the multifactor productivity of the current process? B What is the multifactor productivity of the new process? C Based on your productivity calculation s what decision should you make?
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