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29 October, 07:48

A cleaning company uses 10 lbs each of chemicals A, B and C for each house it cleans. After some quality complaints, the company has decided to increase its use of chemical A by an additional 10 lbs for each house.

By what % has productivity (houses per pound of chemical) fallen?

A) 0%

B) 10%

C) 15%

D) 25%

E) 33%

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Answers (1)
  1. 29 October, 09:46
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    D) 25%

    Explanation:

    Productivity can be described as a measure of profitability of the work done by a company. For example a sales department may measure productivity by number of closed sales in a week.

    In this instance the cleaning company will consider cost reduction an increase in productivity.

    They were using 10 lbs each for house A, B, and C (30 lbs). An additional 10 lb is used increasing total chemicals used to 40 lb.

    The increase in chemical usage is a drop in productivity for the company as they are spending more.

    The percentage drop in productivity is a proportion of the additional quantity of chemical to total chemicals used.

    Percentage drop in productivity = (10/40) * 100 = 25%
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