Question

A business made some changes to its processes, and its productivity increased by 25%. If it previously was able to produce 10, 000 of its product with a total resource investment of $8,000 , how much of its product can be produced if it now invests twice as much in resources? A. 20,000 B. 6,250 C. 12, 500 D. 25,000

Answer 1

D. 25,000

Step-by-step explanation:

Initially, with an investment of $8,000, the business was able to produce 10,000 units of products.

Changes were made and productivity increased by 25%.

25% of 10,000 = 25/100 x 10,000 = 2,500 units

Which means with an investment of $8,000, 12,500 units of products can now be produced.

Now, the business doubled its investment. This means that the units of products produced will also doubled:

12,500 x 2 = 25,000 units.

Hence, the correct option is D.