Dilbert's Incorporated produced 6,000,000 units of software in 2005.At the start of 2006 pointy-haired boss raised employment from 10,000 total annual hours to 14,000 annual hours and production was 7,000,000 units.Based on these numbers what happened to productivity?

Question

Quizplus · Accepted Answer

Productivity is measured by output per unit of input. In this case, the input is the total annual hours of employment. In 2005, Dilbert's Incorporated produced 6,000,000 units with 10,000 annual hours, resulting in a productivity of 600 units per hour. In 2006, they produced 7,000,000 units with 14,000 annual hours, resulting in a productivity of 500 units per hour. Therefore, productivity fell by about 16.7% (100 * (600 - 500) / 600).

Dilbert's Incorporated Produced 6,000,000 Units of Software in 2005