A firm produces 500 units per day using five workers on a five-hour shift. On average, 15% of the units produced are defective and must be scrapped. What is the labor productivity for non-defective units?
A) 17 units/hour
B) 3 units/hour
C) 20 units/hour
D) 85 units/hour
E) 15 units/hour

Question

Quizplus · Accepted Answer

500 per day - 15% or 75 = 425 per day
425 / 5 workers = 85 85 / 5 hr = 17 units / hr

A Firm Produces 500 Units Per Day Using Five Workers