RTR Incorporated estimated its labor productivity as 120 units per labor $ in 2013. In 2014, its estimated labor productivity was 125 units per labor $. What was RTR's labor productivity growth rate from 2013 to 2014?

Question

Quizplus · Accepted Answer

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

Labor productivity growth rate = ((Current year's labor productivity - Previous year's labor productivity) / Previous year's labor productivity) x 100%

Using the formula, we can calculate the labor productivity growth rate for RTR Incorporated as follows:

Labor productivity growth rate = ((125 - 120) / 120) x 100%
= (5 / 120) x 100%
= 0.042 x 100%
= 4.2%

Therefore, the labor productivity growth rate for RTR Incorporated from 2013 to 2014 was 4.2%. The correct answer is C.

RTR Incorporated Estimated Its Labor Productivity as 120 Units Per