Various financial data for SunPath Manufacturing for 2019 and 2020 follow. What is the percentage change in the labor partial productivity measure for SunPath between 2019 and 2020?
A) −9.22
B) 2.33
C) −0.53
D) 2.88
E) 10.39

Question

Various financial data for SunPath Manufacturing for 2019 and 2020 follow.  What is the percentage change in the labor partial productivity measure for SunPath between 2019 and 2020?
A) −9.22 
B) 2.33 
C) −0.53 
D) 2.88 
E) 10.39

Quizplus · Accepted Answer

Labor partial productivity for 2019 = Output / Total labor cost = 400,000 / 100,000 = 4
Labor partial productivity for 2020 = Output / Total labor cost = 500,000 / 120,000 = 4.1667
Percentage change in labor partial productivity = [(4.1667 - 4) / 4] × 100% = 2.33% (rounded to two decimal places)

Various Financial Data for SunPath Manufacturing for 2019 and 2020