What will be the new productivity if the company decides to make 135 chairs per week? 2.3 If the company decides to improve productivity through materials cost reduction only, by how much should these costs be reduced to achieve a 10% increase in total productivity? 2.4 If the company repeats the same exercise as in (c) above but through labour cost reduction only, by how much should these costs be reduced to achieve at 10% increase in total productivity?
What will be the new productivity if the company decides to make 135 chairs per week? 2.3 If the company decides to improve productivity through materials cost reduction only, by how much should these costs be reduced to achieve a 10% increase in total productivity? 2.4 If the company repeats the same exercise as in (c) above but through labour cost reduction only, by how much should these costs be reduced to achieve at 10% increase in total productivity?
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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TTCA Furniture a manufacturing company working on a 4-hour week makes 100 chairs. The sales price is R70 each and
the company has the following costs:
Direct materials R700
Direct labour R300
Overhead R500
2.2 What will be the new productivity if the company decides to make 135 chairs per week?
2.3 If the company decides to improve productivity through materials cost reduction only, by how much
should these costs be reduced to achieve a 10% increase in total productivity?
2.4 If the company repeats the same exercise as in (c) above but through labour cost reduction only, by how
much should these costs be reduced to achieve at 10% increase in total productivity?
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