Question

Econo trix. Oxford Accessories is a mid-size concern which produces high-end boa furnishings of all kinds for the very rich. It has implemented several programs to improve its productivity They have asked you to evaluate the firm's productivity by comparing this year's performance with last year's, in terms of units of output. The following data are available: Last Year This Year Output 10,500 12,100 units units Labor 12,000 13,200 Hours Utilities $7,600 58,250 Assuming labor hours are constant, the percent change in Vilties productivity is from last year to this year, A 5.1 decrease 3.48% increase C.2.2 decrease OD 6.5 increase E. 2.6decrease (1.pp u 10 of 20

Answer 1

Answer is option D

6.5% increase

Last year Utilities productivity = output/ utilities = 10500/7600 = 1.38

This year Utilities productivity = 12100/8250 = 1.47

Percentage change in Utilities productivity = (new - old) /old = (1.47-1.38)/1.38=6.5%increase