In 2009, Modern Electronics, Inc. produced 60,000 calculators, employing 80 workers, each of whom worked 8 hours per day. In 2010, the same firm produced 76,500 calculators, employing 85 workers, each of whom worked 10 hours per day. Productivity at Modern Electronics
A)decreased by 4%
B)remained constant.
C)increased by 8.33%
D)increased by 27.50%

Question

Quizplus · Accepted Answer

Productivity is calculated as output per labor hour. In 2009, productivity was 60,000 calculators / (80 workers * 8 hours) = 93.75 calculators per hour. In 2010, it was 76,500 calculators / (85 workers * 10 hours) = 90 calculators per hour. The productivity decreased by approximately 4%.