Question

Real Foods produced 400,000 cans of diced tomatoes in 2017 and 460,000 cans of diced tomatoes in 2018. They employed the same number of labor hours each year. Relative to their productivity in 2017, their productivity in 2018 was

Answer 1

Answer:

Relative to their productivity in 2017, their 2018 productivity was 15% higher

Explanation:

what this question requires us to do essentially is to find the difference between the productivity of 2017 and 2018, and for representation of change in market factors, percentages are most appropriately used. Hence, it is calculated as:

2017 productivity = $400,000

2018 productivity = $460,000

difference = 460,000 - 400,000 = 60,000

Next, since we got a difference of $60,000, we will determine what percentage of the 2017 productivity ($400,000) is $60,000, and this is done as follows:

X% of 400,000 = 60,000

X/100 × 400,000 = 60,000

4000X = 60,000

X = 60,000 ÷ 4000 = 15%

Therefore, the productivity of 2018, was 15% higher, relative to 2017 productivity.