George makes bowling balls in his plant. With recent increases in his costs, he has a newfound interest in efficiency. George is interested in determining the productivity of his organization. He would like to know organization is maintaining the manufacturing average of a 3% increase in productivity. He has the following data representing a month last year and an equivalent month this year: The percent change in productivity for one month last year versus one month this year on a multifactor basis with as the common denominator = % (enter your response as a percentage rounded to two decimal places.)
Expert Answer
Labor productivity last year = 1200/300=4
Labor productivity this year = 1200/275=4.36
Percentage change = [(4.36-4)/4]*100 = 9.1%
For Dollar Value:-
Productivity last year = 1200/9000 = 0.133
Productivity this year = 1200/10000=0.12
Percentage change =[ 0.12-0.133)/0.133]*100 = -9.77