Problem: XYZ Company produces two type electronic equipment's. Price of the 1St and 2nd type of the electronic equipment is $250 and $175 per unit respectively. Material costs to produce the equipments are 40% and 35% of their prices respectively. The company uses twenty five workers, who can produce on an average of 1400 1St type and 1100 2Ild type equipments per month. Each worker receives $15 per day. To setup the machine 3.6 million dollar was invested. The life of the machine is 6 years. Overhead cost is $20000 per month. Consider 25 working days in a month.
- Compute labor, material, machine, overhead productivity under each system.
- Compute the overall productivity under each system.