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Gibson's Bodywork does automotive collision work. An insurance agency has determined that the standard time...

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Accounting

Gibson's Bodywork does automotive collision work. An insurance agency has determined that the standard time to replace a fender is 0.5 hours (i.e., "standard output"equals 2 fenders per hour) and is willing to pay Gibson $30 per hour for labor (parts and supplies are billed separately). Gibson pays its workers $90 per hour. Suppose Gibson's workers take 5 hours to replace a fender.

a. Gibson's labor hour efficiency is .......%. (Enter your response rounded to two decimal places.)

Given Gibson's labor costs, the company (will/will not )make money on the job.

b. Gibson's labor hour efficiency has to be........% for Gibson to break even on the job. (Enter your response rounded to two decimal places.)

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