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27 July, 19:37

A firm produces 500 units per day using five workers on a five-hour shift. On average, 15% of the units produced are defective and must be scrapped. What is the labor productivity for non-defective units?

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  1. 27 July, 22:44
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    17 units per hour or 85 units per labor

    Explanation:

    The per hour productivity of a single labor for non-defective units is 17.

    You can come to this conclusion using following mathematical calculation

    STEPS:

    1. 500 units (15% defective)

    500 - (15% of 500) = 425 units

    2. 5 workers working a 5 hour shift, 425 units divided by 5 hours

    425/5 = 85 units per hour

    3. 85 units are produced in an hour divided by 5 workers

    85/5 = 17 units per worker

    Thus 17 non-defective units are produced by a single worker in an hour.
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