ABC production process usually produces 2, 500 uniforms
The ABC Company has a large order for special uniforms to be
used in an urgent operation. Working the normal two shifts of 40 hours each per
week, the ABC production process usually produces 2, 500 uniforms per week at a
standard cost of $120 each. Seventy employers work the first shift and 30 the
second. The contract price is $200 per uniform. Because of the urgent need, ABC
is authorized to sue around-the-clock production, six days per week. When each
of the two shifts work 72 hours per week, production increases to 4,000
uniforms per week but at a cost of $144 each.
Did the multifactor productivity ratio increase, decrease,
or remain the same? If it changed, by what percentage did it change?
Did the labor productivity ratio increase, decrease, or
remain the same? If it changed, by what percentage did it change?
Did weekly profits increase, decrease, or remain the same?
The ABC Company has a large order for special uniforms to be
used in an urgent operation. Working the normal two shifts of 40 hours each per
week, the ABC production process usually produces 2, 500 uniforms per week at a
standard cost of $120 each. Seventy employers work the first shift and 30 the
second. The contract price is $200 per uniform. Because of the urgent need, ABC
is authorized to sue around-the-clock production, six days per week. When each
of the two shifts work 72 hours per week, production increases to 4,000
uniforms per week but at a cost of $144 each.
Did the multifactor productivity ratio increase, decrease,
or remain the same? If it changed, by what percentage did it change?
Did the labor productivity ratio increase, decrease, or
remain the same? If it changed, by what percentage did it change?
Did weekly profits increase, decrease, or remain the same?
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