Gibson Valves produces cast bronze valves on an assembly line, currently producing 1600 valves per shift. If the production is increased to 2000 valves per shift, labour productivity will increase by
A) 10%.
B) 20%.
C) 25%.
D) 40%.
E) 50%.

Question

Quizplus · Accepted Answer

Labour productivity is calculated as output per worker or per hour. Increasing production from 1600 to 2000 valves represents a 25% increase in output (2000 - 1600 = 400; 400 / 1600 = 0.25 or 25%).

Gibson Valves Produces Cast Bronze Valves on an Assembly Line