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A productivity index of 110% means that a company’s labor costs would have been 10% higher if it had not made production improvements. Now refer to the Income Statement in Baldwin's Annual Report. The direct labor costs for Baldwin were $32,584. These labor costs could have been $20,000 higher if investments in training that increased productivity had not been made. What was the productivity index for Baldwin that led to such savings?

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Operation Management, Management Studies

Category:- Operation Management
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