Dilbert's Incorporated produced 5,000,000 units of accounting software in 2008. At the start of 2009 the pointy-haired boss reduced total annual hours of employment from 10,000 to 8,000 and production was 4,800,000. These numbers indicate that productivity
A)fell by 4%.
B)fell by 20%.
C)rose by 12%.
D)rose by 20%.

Question

Quizplus · Accepted Answer

Productivity is calculated as output per hour. In 2008, productivity was 500 units per hour (5,000,000 units / 10,000 hours). In 2009, productivity was 600 units per hour (4,800,000 units / 8,000 hours). The increase in productivity is (600 - 500) / 500 = 0.20 or 20%.

Dilbert's Incorporated Produced 5,000,000 Units of Accounting Software in 2008