Gibson Valves produces cast bronze valves on an assembly line,currently producing 1600 valves per shift.If the production is increased to 2000 valves per shift,labor productivity will increase by:
A)10%.
B)20%.
C)25%.
D)40%.
E)50%.

Question

Quizplus · Accepted Answer

Labor productivity is calculated by dividing the number of units produced by the number of labor hours worked. In this case, the number of units produced is increasing from 1600 to 2000, while the number of labor hours worked is assumed to remain the same. Therefore, labor productivity will increase by (2000 - 1600) / 1600 * 100% = 25%.

Gibson Valves Produces Cast Bronze Valves on an Assembly Line,currently