Mr. Waqar is employed in a furniture manufacturing concern and he is currently working a total of 11 hours per day to produce 10 chairs. He thinks that by adopting a new method he can increase his rate to 12 chairs per day. The total material cost for each chair is approximately Rs. 600; he has to invest Rs. 700 in the necessary supplies (expendables) per day; energy costs are assumed to be only Rs. 550 per day. Viewing this from a total (multifactor) productivity perspective, what is his productivity at present and with the new method?
Mr. Waqar is employed in a furniture manufacturing concern and he is currently working a total of 11 hours per day to produce 10 chairs. He thinks that by adopting a new method he can increase his rate to 12 chairs per day. The total material cost for each chair is approximately Rs. 600; he has to invest Rs. 700 in the necessary supplies (expendables) per day; energy costs are assumed to be only Rs. 550 per day. Viewing this from a total (multifactor) productivity perspective, what is his productivity at present and with the new method?
Chapter1: Financial Statements And Business Decisions
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Mr. Waqar is employed in a furniture manufacturing concern and he is currently working a total of 11 hours per day to produce 10 chairs. He thinks that by adopting a new method he can increase his rate to 12 chairs per day. The total material cost for each chair is approximately Rs. 600; he has to invest Rs. 700 in the necessary supplies (expendables) per day; energy costs are assumed to be only Rs. 550 per day. Viewing this from a total (multifactor) productivity perspective, what is his productivity at present and with the new method?
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