Unformatted text preview: 8. a. (2 points) $ 60/($15+$20+$20) = 1.09 This number tells us that the lab is charging a bit more than 9% over the expenses of labor, materials, and overhead. b. (2 points) Labor productivity = $60/3 hours = $20 per hour Additional problem (2 points) If inputs increase by 40% and outputs increase by 20%, what is the percentage change in productivity? The answer is: decreased by 14% P1=x/y P2=(x*(1+0.2))/(y*(1+0.4))=1.2x/1.4y Change: (p2p1)/p1=.14...
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 Spring '08
 CURTHURDS
 Management

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