A company ‘X’ manufactures shaft of two different diameters (50 inches and 60 inches). Total number of employees work in the company are 11 and can produce 1200 shafts per day. Cost for making a single part is $5.00 and selling price is $8.00. Constantly, the efficiency of the process is being measured and being monitored.
What are the inputs mentioned in the above process?
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A shaft costs $5 and sold for 8$, this means they make a profit of $3 for every sale. In a day they produce 1200 shafts, this sums up to $3600 made in a day. If they decide to share the profit, they will get approximately $327 in a day.
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