Answer :
Answer:
Option (E) is correct.
Explanation:
The labor productivity boost by 50%
From current 5000 pairs per worker,
the productivity will increase to:
= 5,000 × (1 + 50%)
= 7,500
Total pay = $40,000 annually
Cost per pair with increased productivity:
= Total pay ÷ Increased productivity
= 40,000 ÷ 7,500
= $5.33
Therefore, it is accurate to say that its labor costs per pair produced will decline from $8.00 per pair to $5.33 for a production facility in North America.
Answer:
Its Labor costs per pair produced will decline from $8.00 per pair to $5.33 for a production facility in North America that currently has labor productivity of 5,000 pairs per worker and total regular compensation (which does not include overtime pay) of $40,000 annually
Explanation:
Labor productivity boost[tex]=50\%[/tex]
Increase of Productivity [tex]=5000[/tex] × [tex](1+50\%)[/tex]
[tex]=5000*1.5[/tex]
[tex]=7,500[/tex]
Total Regular compensation(Annually) [tex]= $40,000[/tex]
Cost per pair with increased productivity:
= Total pay ÷ Increased productivity
= [tex]40,000[/tex] ÷ [tex]7,500[/tex]
= [tex]\$5.33[/tex]
Hence Option E is a correct answer.
Learn more about Labor productivity, refer:
- https://brainly.com/question/6430277