You work for a company that assembles plastic toys.Generally speaking,employees working at similar assembly plants receive $15.00 per hour.Internal corporate data indicate that the average worker should be able to assemble 20 toys per hour.Your organization has made a strategic decision to pay assembly line workers on the basis of their output.What is the piece rate you are contemplating paying your assembly line workers?
A) $300.00 per day
B) $1.33 per toy
C) $0.75 per toy
D) $150.00 per day

Question

Quizplus · Accepted Answer

To calculate the piece rate, we need to determine how much an employee will be paid for each toy they assemble. Since the average worker can assemble 20 toys per hour and they will be paid based on their output, we need to determine how much they will earn for assembling 20 toys.

If the employee is paid $15.00 per hour, they will earn $0.75 per toy ($15.00 ÷ 20 toys). Therefore, the piece rate being contemplated is $0.75 per toy (Choice C).

You Work for a Company That Assembles Plastic Toys