Gibson's Bodywork does automotive collision work. An insurance agency has determined that the standard time to replace a fender is 0.25 hours (i. e., "standard output"equals 4 fenders per hour) and is willing to pay Gibson $40 per hour for labor (parts and supplies are billed separately). Gibson pays its workers $25 per hour. Suppose Gibson's workers take 5 hours to replace a fender. a. Gibson's labor hour efficiency is nothing%. (Enter your response rounded to two decimal places.) Given Gibson's labor costs, the company ▼ will will not make money on the job. b. Gibson's labor hour efficiency has to be nothing% for Gibson to break even on the job. (Enter your response rounded to two decimal places.)
Answers: 1
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Gibson's Bodywork does automotive collision work. An insurance agency has determined that the standa...
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