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

Question

Business

Jay Compton

12 November, 11:48

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

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Answers (1)

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Jeramiah Mendoza · Answer 1

D. 25,000

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.