Answer:
Explanation:
To calculate the total input in the new system, we need to consider the changes in the number of employees, payroll cost, and overhead expenses.
Initially, the company had:
- 14 employees
- 6 hours of work per day
- Total payroll cost of ₱12,250 per day
- Overhead expenses of 12.5% of the total labor cost per day
- 1300 transactions per day
After the upgrade, the company has:
- 10 employees
- 6 hours of work per day (unchanged)
- Reduced payroll cost of ₱8750 per day
- Increased overhead expenses of additional ₱180 per day
- Transactions per day increased by 15%
Let's calculate the new total input using the updated information:
1. Calculate the new overhead expenses:
- Initial total labor cost per day = ₱12,250
- Initial overhead expenses per day = 12.5% of ₱12,250 = ₱1531.25
- Additional overhead expenses after the upgrade = ₱180
- New total overhead expenses per day = Initial overhead expenses + Additional overhead expenses = ₱1531.25 + ₱180 = ₱1711.25
2. Calculate the new number of transactions per day:
- Initial transactions per day = 1300
- Increased transactions after the upgrade = 15% of 1300 = 195
- New transactions per day = Initial transactions + Increased transactions = 1300 + 195 = 1495
3. Calculate the new total input:
- New payroll cost per day = ₱8750
- New total labor cost per day = New payroll cost + New overhead expenses = ₱8750 + ₱1711.25 = ₱10,461.25
- New total input per day = New total labor cost + New transactions per day = ₱10,461.25 + 1495
Therefore, the total input in the new system would be ₱10,461.25 + 1495.
I hope this explanation clarifies the calculation. If you have any further questions, feel free to ask!