Question

A cleaning company uses 10 lbs each of chemicals A, B and C for each house it cleans. After some quality complaints, the company has decided to increase its use of chemical A by an additional 10 lbs for each house.
By what % has productivity (houses per pound of chemical) fallen?

A) 0%

B) 10%

C) 15%

D) 25%

E) 33%

Answer 1

Answer:

D) 25%

Explanation:

Productivity can be described as a measure of profitability of the work done by a company. For example a sales department may measure productivity by number of closed sales in a week.

In this instance the cleaning company will consider cost reduction an increase in productivity.

They were using 10 lbs each for house A, B, and C (30 lbs). An additional 10 lb is used increasing total chemicals used to 40 lb.

The increase in chemical usage is a drop in productivity for the company as they are spending more.

The percentage drop in productivity is a proportion of the additional quantity of chemical to total chemicals used.

Percentage drop in productivity= (10/40)*100= 25%