A company that processes fruits andvegetables is able to produce 1000 cases ofcanned peaches in 8 hours with fourworkers. Each worker is paid 2 RO per hour.What are the new labor hours, if outputremains the same and the productivity interms of cases/RO increased by 10%. Roundto 2 decimal placesSelect one:a. None is correctb. 2.35 hoursc. 5.57 workers• d. 7.27 hourse. 7.82 hours

Answered: What are the new labor hours, if output…

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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Related questions

Question

A company that processes fruits and
vegetables is able to produce 1000 cases of
canned peaches in 8 hours with four
workers. Each worker is paid 2 RO per hour.
What are the new labor hours, if output
remains the same and the productivity in
terms of cases/RO increased by 10%. Round
to 2 decimal places
Select one:
a. None is correct
b. 2.35 hours
c. 5.57 workers
• d. 7.27 hours
e. 7.82 hours

Expert Solution

Step 1

Productivity indicating the proportionate relationship between output and input. It consider each input values like labor cost, material, overhead etc as input cost and the value of products or services or numbers as outputs. Labor productivity indicating the proportionate relationship between labor hour or cost with total outputs. Using the concepts, we can identify the new labor hours like given below.