Question

The Fine Feline Co. produces decorative collars for cats. Last week employees worked 320 hours and produced​ 32,000 cat collars. This week the workers worked the same 320​ hours, but produced​ 33,600 cat collars. Labor productively increased by​ _______ over last week.

Answer 1

5%

Step-by-step explanation:

The computation of labor productivity is shown below:-

Cat collars produced last week = 32,000

This week cat collars = 33,600

Increase in cat collars unit = Cat collars produced last week - This week cat collars

= 33,600 - 32,000

= 1,600

Increase in labor productivity = Increase in units ÷ Initial production

= 1,600 ÷ 32,000

= 0.05

or

= 5%

Therefore for computing the labor productivity we simply divide increase in units by initial production.