A productivity index of 110% means that a company\'s labor cost would have been
ID: 2807046 • Letter: A
Question
A productivity index of 110% means that a company's labor cost would have been 10% higher if it had not made production improvements. The direct labor costs for Ballwin were $32,707. These labor costs could have been $20,000 higher if investments in training that increased productivity had not been made. What was the product productivity index for Baldwin that led to such savings?a. 155.0% b. 161.1% c. 38.9% d. 45.0% A productivity index of 110% means that a company's labor cost would have been 10% higher if it had not made production improvements. The direct labor costs for Ballwin were $32,707. These labor costs could have been $20,000 higher if investments in training that increased productivity had not been made. What was the product productivity index for Baldwin that led to such savings?
a. 155.0% b. 161.1% c. 38.9% d. 45.0% A productivity index of 110% means that a company's labor cost would have been 10% higher if it had not made production improvements. The direct labor costs for Ballwin were $32,707. These labor costs could have been $20,000 higher if investments in training that increased productivity had not been made. What was the product productivity index for Baldwin that led to such savings?
a. 155.0% b. 161.1% c. 38.9% d. 45.0%
a. 155.0% b. 161.1% c. 38.9% d. 45.0%
Explanation / Answer
Option b. 161.1% is correct
product productivity index= labor costs without production improment/ labor costs with production improvement *100
product productivity index= (32707+20000) /32707 *100 =161.1%