6. Gibson’s Bodywork does automotive collision work. An insurance agency has determined that the standard time to replace a fender is 2.5 hours (i.e., “standard output” 0.4 fenders per hour) and is willing to pay Gibson $50 per hour for labor (parts and supplies are billed separately). Gibson pays its workers $35 per hour.

a. (**) Suppose Gibson’s workers take four hours to replace a fender. What is Gibson’s labor hour efficiency?

Given Gibson’s labor costs, will the company make money on the job?

b. (***) What does Gibson’s labor hour efficiency have to be for Gibson to break even on the job? Show your work.