a. Before the change in work rules, the company's productivity per day was 22.50 boxes/hour.
b. After the change in work rules, the new productivity level per day is 35.00 boxes/hour.
c. If production is increased to 750 boxes per day with three 8-hour shifts, the new productivity level per day would be approximately 31.25 boxes/hour.
a) Before the change in work rules, Halifax Seafood produced 450 wooden packing boxes per day working in two 10-hour shifts. To calculate the productivity per day, we need to determine the number of boxes produced per hour.
Number of boxes produced per day = 450 boxes
Number of hours worked per day = 2 shifts × 10 hours per shift = 20 hours
Productivity per day before the change = Number of boxes produced per day / Number of hours worked per day
Productivity per day before the change = 450 boxes / 20 hours = 22.50 boxes/hour
Therefore, before the change in work rules, the company's productivity per day was 22.50 boxes/hour.
b) After the change, the company is now able to produce 700 boxes per day. To calculate the new productivity level per day, we need to determine the number of boxes produced per hour.
Number of boxes produced per day = 700 boxes
Number of hours worked per day = 2 shifts × 10 hours per shift = 20 hours
Productivity per day after the change = Number of boxes produced per day / Number of hours worked per day
Productivity per day after the change = 700 boxes / 20 hours = 35.00 boxes/hour
Therefore, after the change in work rules, the new productivity level per day is 35.00 boxes/hour.
c) If production is increased to 750 boxes per day with three 8-hour shifts, we can calculate the new productivity level per day.
Number of boxes produced per day = 750 boxes
Number of hours worked per day = 3 shifts × 8 hours per shift = 24 hours
New productivity per day = Number of boxes produced per day / Number of hours worked per day
New productivity per day = 750 boxes / 24 hours ≈ 31.25 boxes/hour
Therefore, if production is increased to 750 boxes per day with three 8-hour shifts, the new productivity level per day would be approximately 31.25 boxes/hour.
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Antiques ‘R’ Us is a mature manufacturing firm. The company just paid a dividend of $11.60, but management expects to reduce the payout by 5.25 percent per year, indefinitely. If you require a return of 11 percent on this stock, what will you pay for a share today?
If you require a return of 11% on this stock, you would be willing to pay approximately $191.13 for a share of Antiques 'R' Us today.
To determine the current share price of Antiques 'R' Us, we can use the dividend discount model (DDM) which calculates the present value of future dividends.
Given:
Dividend just paid = $11.60
Dividend reduction rate = 5.25% per year
Required return = 11%
We need to find the present value of future dividends to calculate the current share price.
Step 1: Calculate the expected dividend in the next period:
Expected dividend in the next period = Dividend just paid × (1 - Dividend reduction rate)
Expected dividend in the next period = $11.60 × (1 - 0.0525) = $11.60 × 0.9475 = $11.007
Step 2: Calculate the present value of future dividends:
Present value of future dividends = Expected dividend in the next period / (Required return - Dividend reduction rate)
Present value of future dividends = $11.007 / (0.11 - 0.0525) = $11.007 / 0.0575 = $191.13
Step 3: Calculate the current share price:
Since the dividend reduction rate is applied indefinitely, the current share price is the present value of future dividends.
Current share price = $191.13
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