Dilbert's Incorporated produced 5,000,000 units of accounting software in 2010.At the start of 2011 the pointy-haired boss reduced total annual hours of employment from 10,000 to 8,000 and production was 4,800,000.These numbers indicate that productivity
A)fell by 4%.
B)fell by 20%.
C)rose by 12%.
D)rose by 20%.

Question

Quizplus · Accepted Answer

Productivity is calculated as output per hour. In 2010, productivity was 500 units per hour (5,000,000 units / 10,000 hours). In 2011, productivity was 600 units per hour (4,800,000 units / 8,000 hours). This is a 20% increase in productivity ((600 - 500) / 500 * 100 = 20%).

Dilbert's Incorporated Produced 5,000,000 Units of Accounting Software in 2010