Question

In 2010, Acme Foods produced 300,000 bags of pretzels, employing 12,000 hours of labor. In 2011, it produced 322,000 bags of pretzels, employing 14,000 hours of labor. Acme Foods productivity...

a. decreased by 8%.
b. was unchanged.
c. increased by 6.8%.
d. increased by 7.3%.

Answer 1

Answer: Option (a) is correct.

Step-by-step explanation:

Given that,

In 2010,

Bags of pretzels produced = 300,000

Employing = 12,000 hours of labor

Acme Foods productivity =
`(300,000)/(12,000)`

= 25 bags of pretzels produced per labor hour

In 2011,

Bags of pretzels produced = 322,000

Employing = 14,000 hours of labor

Acme Foods productivity =
`(322,000)/(14,000)`

= 23 bags of pretzels produced per labor hour

Therefore,

Acme Foods productivity decreased by =
`(Productivity\ in\ 2010\ - Productivity\ in\ 2011)/(Productivity\ in\ 2010) *100`

=
`(25 - 23)/(25) *100`

= 8%