Gibson Valves produces cast bronze valves on an assembly line, currently producing 1600 valves per shift. If the production is increased to 2000 valves per shift, labor productivity will increase by a. 10% b. 20% c. 25% d. 40% e. 50%
c. 25%
To calculate the increase in productivity, we need to use the formula:
Productivity = Output / Input
where “Output” represents the number of valves produced and “Input” represents the labor hours required to produce them.
Initially, the productivity is:
Productivity1 = 1600 valves per shift / labor hours
When the production is increased to 2000 valves per shift, the new productivity is:
Productivity2 = 2000 valves per shift / labor hours
To calculate the increase in productivity as a percentage, we can use the following formula:
Increase in productivity = (Productivity2 – Productivity1) / Productivity1 * 100%
Plugging in the numbers, we get:
Increase in productivity = (2000 – 1600) / 1600 * 100% = 25%
Therefore, the answer is option c) 25%.
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