Problem: A company has introduced a process improvement that reduces processing time for each unit, so that output is increased by 25% with less material, but one additional worker required. Under old process, five workers could produce 60 units per hour. Labor costs are $12/hour, and material input was previously $16/unit. For the new process, material is now$10/unit. Overhead is charged at 1.6 times direct labor cost. Finished units are sold for $31 each. What increase (or decrease) in productivity is associated with the process improvement?
(1) Productivity with old system
(2) Productivity with new system
(3) % change (increase or decrease) in productivity