Question

Gibson Valves produces cast bronze valves on an assembly​ line, currently producing 2000 valves per shift. If the production changes to 1600 valves per​ shift, labor productivity will change​ by:

Answer 1

Answer:

25%

Explanation:

Calculation for the change in labor productivity

Using this formula

Change in labor Productivity = (New Productivity - Old Productivity)/Old Productivity

Let plug in the formula

Change in labor Productivity= ($2,000-$1,600)/$1,600

Change in labor Productivity= $400/$1,600

Change in labor Productivity= 0.25*100

Change in labor Productivity=25%

Therefore labor productivity will change​ by: 25%