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A service unit of Pony Express Bank has 10 employees. Each employee receives $20 per hour. Each employee works 8 hours per day. The overhead cost is 1.5 times the labor cost. Currently, the service unit processes 100 customers per day. The current material cost is $10 per customer. They are planning to use a new, more standard procedure that will improve their customer service. After the use of new, more standard procedure, it is possible for each employee to process two additional customers per day. The material cost after the use of new, more standard procedure is still $10 per customer. What is the total factor productivity for the service unit after the use of new, more standard procedure? Use customers processed per dollar spent on labor, overhead, and material as the measure of total factor productivity.

a. 0.0417 customer processed per dollar

b. 0.1 customer processed per dollar

c. 0.03 customer processed per dollar

d. 0.0231 customer processed per dollar

e. 0.0625 customer processed per dollar

Operation Management, Management Studies

  • Category:- Operation Management
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