Riley Inc. estimates that its productivity in the year 2014 was 8 t-shirts per labor hour. In 2015, Riley estimated its productivity as 9 t-shirts per labor hour. What is Riley's productivity growth rate from 2014 to 2015?

Question

Quizplus · Accepted Answer

The productivity growth rate can be calculated using the following formula:

Productivity Growth Rate = [(Productivity in 2015 - Productivity in 2014)/Productivity in 2014] x 100%

Substituting the given values, we get:

Productivity Growth Rate = [(9-8)/8] x 100%
Productivity Growth Rate = 0.125 x 100%
Productivity Growth Rate = 12.5%

Therefore, the productivity growth rate from 2014 to 2015 is 12.5%. The correct answer is B.

Riley Inc Estimates That Its Productivity in the Year 2014 Was