Find the impact on productivity

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Reference no: EM1378564

A lumber Corporation manufactures 240 apple crates per one hundred logs. The corporation currently purchases 100 logs per day and each log requires three labor hours to process.

The boss of the company believes that he can hire a professional buyer who can purchase better quality logs at the same cost. These logs will increase his production to 260 crates per 100 logs. His labor hours will also increase by 8 hours per day.

What will be the impact on productivity (measured in crates per labor hour) if the purchaser is hired?

Reference no: EM1378564

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