ALIBABA Ltd. is a firm in the area of Indah Permai. With standard equipment, the firm typically cleaned 70 chemical tank cars per month. They utilized 12 gallons of solvent, and two employees worked 20 days per month, 8 hours a day. The company decided to switch to a larger cleaning machine. Last April, they cleaned 60 tank cars in only 15 days. They utilized 15 gallons of solvent, and the two employees worked 8 hours a day. a. What was their raw material and their labor productivity with the standard equipment? b. What is their raw material and their labor productivity with the larger machine? c. What is the change in each productivity measure?

ALIBABA Ltd. is a firm in the area of Indah Permai. With standard equipment, the firm typically cleaned 70 chemical tank cars per month. They utilized 12 gallons of solvent, and two employees worked 20 days per month, 8 hours a day. The company decided to switch to a larger cleaning machine. Last April, they cleaned 60 tank cars in only 15 days. They utilized 15 gallons of solvent, and the two employees worked 8 hours a day. a. What was their raw material and their labor productivity with the standard equipment? b. What is their raw material and their labor productivity with the larger machine? c. What is the change in each productivity measure?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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