The labor productivity ratio based on the normal two shifts

The labor productivity ratio based on the normal two shifts changed by ( )% as compared to two shifts working 72 hours per week.( Enter your response rounded to two decimal places.

c. The weekly profits (increse/decrease) as the result of production increasing to 3800, as compared to the normal production of 2600 uniforms.

Please answer step by step

Thanks

Solution

a. the multiactor productivity in normal conditions= 2600/40= 65 uniforms per hour

the multifactor productivy when time increased= 3800/72= 52.77 uniforms per hour

b. labor productivity in normal conditions= 65/96= 0.677 product per labor/ per hour

when increase the time it is= 52.77/96= 0.55 product per labor/ per hour

c. normal profits per week= 2600*(240-125)= 2600*115= $299,000

when time increases= 3800* (240- 160)= 3800*80= $304,000

the weekly profits were increased when the production levels increases.