Question

This year, Donnelly Inc.: will produce 60,000 hot water heaters at its plant in Delaware, in order to meet expected global demand. To accomplish this, each laborer at the plant will work 160 hours per month. If the labor productivity at the plant is 0.15 hot water heaters labor hour, how many laborers are employed at the plant?

Answer 1

2,500 employees

Step-by-step explanation:

First step is to determine how many labor hours are required to produce those 60,000 hot water heaters.

We know the total quantity to produce: 60,000 units

We know the productivity: 0.15 unit / labor hour

So, if we divide the quantity (units) by the productivity (units/hour), we'll get the required hours to produce the units.

H = 60000 / 0.15 = 400,000 labor hours.

We do a similar calculation for the laborers.

We know we need 400,000 labor hours for the month

We know each employee will work 160 hours for the month.

So, if we divide the total number of hours required (h), by the number of hours per employees (h/e), we'll get the number of employees working:

E = 400000 / 160 = 2,500 employees