Dilbert's Incorporated produced 6,000,000 units of software in 2005.At the start of 2006 the 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 as output per unit of input. In this case, the input is the total annual hours worked by the employees.

In 2005, the productivity was:
Productivity = 6,000,000 units / 10,000 hours = 600 units per hour

In 2006, the productivity was:
Productivity = 7,000,000 units / 14,000 hours = 500 units per hour

The productivity fell by (600-500)/600 = 16.7%. Therefore, the correct answer is A.

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