Gibsons bodywork does automotive collision work an, Ask an Expert

Management Studies

?Gibson's Bodywork does automotive collision work. An insurance agency has determined that the standard time to replace a fende is 0.4 hours (I.e.,"standard output" = 2.5 fenders per hour) and is willing to pay Gibson $85 per hour for labor. Gibson pays its workers $55 per hour. Suppose Gibson's workers take 9 hours to replace a fender.

A. Gibson labor hour efficiency is ?

B. Given? Gibson's labor? costs, the company (will/will not) make money on the job

C. Gibson's labor hour efficiency has to be ----% for Gibson to break even on the job.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92540038

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