Answer:
Store B utilizes material better
Explanation:
Store A:
units= 5500q
Labor hs= 125
Material used=220
Store A needs 0,0227hs to make one unit, using 0,04lb of material.
The unitary cost of one unit is= 0,0227*8+0,04*15=$0,7816
Store B:
Units= 4000q
Labor hs=110hs
Material used= 120lb
Store B needs 0,0275 hs and 0,03 of material to make one unit.
The unitary cost of one unit is = 0,0275*8+0,03*15= $0,67
Store A utilizes fewer hours to make one unit, (0,0275>0,0227) but is less efficient using material (0,03<0,04). Store B utilizes more time using less material resulting in a considerable difference in cost per unit. Store B is more efficient, some reasons can be that workers in store b have more experience or are more capacitated than Store A workers.