Question: Crawford Manufacturing Company has an order for producing alternators to be used in one of major car manufacturers’ assembly line. Working in two shifts of 40 hours (each), Crawford usually produces 2500 alternators per week at a cost of $120 each. Seventy employees work the first shift and 30 the second. The contract price is $200 per alternator. Because of the recent surge in demand, Crawford is planning on around the clock production, six days per week. When each of the two shifts works 72 hours per week, production increases to 4000 alternators per week but at a cost of $144 each. With these new production factors:

a. Did the productivity ratio increase, decrease, or remain the same? If it changed, by what percentage did it change?

b. Did the labor productivity ratio increase, decrease, or remain the same? If it changed, by what percentage did it change?

c. Did weekly profits increase, decrease, or remain the same?