Must show work Solution Implement the new process Explanation: Productivity = output/Input Output = No of units per hour*price per unit Labor cost = No of workers*rate per hour Overhead cost = 1.4*labor cost Current process: Output = 200 units*20 = $4000 Input = Labor cost+ Material cost+ Overhead cost = (10*10)+120 + 1.4*(10*10) = 100 + 120 + 140 = 360 Productivity = 4000/360 = 11.11 New process: Output = 300*20 = 6000 Input = Labor cost+ Material cost+ Overhead cost = (14*10)+150 + 1.4*(14*10) = 140 + 150 + 196 = 486 Productivity = 6000/486 = 12.35 Implement the new process as the productivity is high.