A company produces 750 bicycles in one week.The labor used to make the bicycles was 400 hours.The next week, output was 710 bicycles using 360 hours.What was the change in labor productivity?
A) Increased by 1.9%
B) Increased by 5.2%
C) Decreased by 2.4%
D) Decreased by 3.3%

Question

Quizplus · Accepted Answer

Labor productivity is calculated as the ratio of output (bicycles) to input (labor hours).

For the first week: 
Labor productivity = 750 bicycles / 400 hours = 1.875 bicycles per hour.

For the second week:
Labor productivity = 710 bicycles / 360 hours = 1.9722 bicycles per hour.

The change in labor productivity can be calculated as the percentage increase or decrease in the second week compared to the first week:

Change = (New productivity - Old productivity) / Old productivity * 100%

Change = (1.9722 - 1.875) / 1.875 * 100%

Change = 5.2%

Therefore, the labor productivity increased by 5.2% from the first week to the second week. The answer is B.

A Company Produces 750 Bicycles in One Week