The Education Innovations Corporation produces puzzles in its Colorado manufacturing plant.The company is currently evaluating ways to improve productivity.The accountant of the firm's parent organization suggested that management implement a new compensation plan based on throughput performance measure as an incentive to increase productivity.To demonstrate how such a measure might work,the accountant gathered the following production data for a recent month:
$\begin{array}{ll}
\text { Total units attempted } & \$ 6,000,000 \
\text {Good units manufactured } & 4,800,000\
\text { Processing time (total hours) } &800\
\text { Value-added processing time } &600\
\end{array}$

Question

The Education Innovations Corporation produces puzzles in its Colorado manufacturing plant.The company is currently evaluating ways to improve productivity.The accountant of the firm's parent organization suggested that management implement a new compensation plan based on throughput performance measure as an incentive to increase productivity.To demonstrate how such a measure might work,the accountant gathered the following production data for a recent month:
 $\begin{array}{ll}
\text { Total units attempted } & \$ 6,000,000  \
\text {Good units manufactured } & 4,800,000\
\text { Processing time (total hours) } &800\
\text { Value-added processing time } &600\
\end{array}$

Quizplus · Accepted Answer

The Answer of The Education Innovations Corporation produces puzzles in its Colorado manufacturing plant.The company is currently evaluating ways to improve productivity.The accountant of the firm's parent organization suggested that management implement a new compensation plan based on throughput performance measure as an incentive to increase productivity.To demonstrate how such a measure might work,the accountant gathered the following production data for a recent month:
 $\begin{array}{ll}
\text { Total units attempted } & \$ 6,000,000  \
\text {Good units manufactured } & 4,800,000\
\text { Processing time (total hours) } &800\
\text { Value-added processing time } &600\
\end{array}$

The Education Innovations Corporation Produces Puzzles in Its Colorado Manufacturing