Question

In 2011 Buckeye Brewing produced 1,000 bottles of ginger ale each day. It employed 10 workers each working 8 hours a day. In 2012 it produced 960 bottles of ginger ale each day employing 8 workers who worked 8 hours each day. Productivity at Buckeye Brewing:____________
a. increased by 20%
b. increased by 16.67%.
c. decreased by 1.67%.
d. decreased by 40%.

Answer 1

Answer:

a. increased by 20%

Explanation:

Productivity is measured by total output/ inputs used

For Buckeye brewing, productivity in 2011 will be.

Units produced is 1000,

inputs of labor used =  10 hours  x 8 workers x 365 days

= 10 x 8 x 365

=29,200 hours

productivity = 1000/ 29,200

=0.034 units per day

In 2012, productivity will be : units produced equal 960

inputs of labor used = 8 x 8 x  365= 23 360

productivity = 960/ 23 360= 0.041 units per day

the difference in productivity between 2011 and 2012

= 0.041 - 0.034

=0.007 increase in productivity

percentage increase

= 0.007/0.034 x 100

=0.20 X 100

=20%