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An electronics company makes communications devices for military contracts. The company just completed two contracts. The navy contract was for 2, 295 devices and look 27 workers four weeks (40 hours per week) to complete. The army contract was for 5, 220 devices that were produced by 39 workers in five weeks. a. Calculate the productivity for navy and army contracts in units produced per labor hour. (Round your answers to 2 decimal places.) b. On which contract were the workers more productive? Army contract Navy contract
Expert Answer
Productivity = Output/Input
a)
Navy:
Output = 2,295 devices
Input = 27 workers * 4 weeks*40 hours per week = 4320 hours
Productivity = 2295/4320 = 0.53 units / labor hour
Army:
Output = 5220
Input = 39*5*40 = 7800
Productivity = 5220/7800 = 0.67 units / labor hour
b) Workers on Army contract were more productive
