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The production of 1 sandwich is 2 minutes which includes the work of 3 stations (=3 workers). Each worker earns 10$ per hour. The full capacity is 78 sandwiches per hour. 1) What is the cost of direct labor per sandwich at capacity (78 sandwiches)? 2) What is the cost of direct labor per sandwich when demand is 40 sandwiches per hour?

Operation Management, Management Studies

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