Question

The total output from a production system in one day is 700 units and the total labor necessary to produce the 700 units is 350 hours. Using the appropriate productivity measure, which of the following numbers represents the resulting productivity ratio?

1.0 unit/labor hour
2.0 units/labor hour
0.7 unit/labor hour
0.5 unit/labor hour
None of the above

Answer 1

2.0 units /labor hour

Explanation:

To estimate the productivity ratio, we have to divide the numer of unities produced and the total hours .

700 units/350 hours = 2.0 units/hour