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Table 1.2 The Abco Company Manufactures Electrical Assemblies. the Current Process Uses

question 102

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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:
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. Based on your productivity calculations, what decision should you make? A)  implement the new process B)  stay with the current process C)  need more information to make a decision D)  Either process is acceptable (since the multi-factor productivities are the same) .
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. Based on your productivity calculations, what decision should you make?

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Definitions:

Proposal

A plan or suggestion, especially a formal or written one, put forward for consideration or discussion by others.

Closing Section

The final part of a document or communication that summarizes the content and may offer next steps or a call to action.

Business Report

A formal document that presents information and analysis to assist in decision-making within a business context.

Key Points

The most important or central ideas, facts, or pieces of information relating to a topic or discussion.

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