A retail store had sales of 300,000 units in July and 360,000 units in August. T

ID: 387453 • Letter: A

Question

A retail store had sales of 300,000 units in July and 360,000 units in August. The store has 200

full-time employees and each employee works 40 hours per week. In the month of July, the store

also had 50 part-time employees and each part-time employee worked 15 hours per week. In the

month of August, the store also had 40 part-time employees and each part-time employee worked

20 hours per week.

Assume that there are 4 weeks in each month

a. Find the labor productivity (expressed in

units sold

per

labor-hour

) for the month of July.

b. Find the labor productivity (expressed in

units sold

per

labor-hour

) for the month of August.

c. Find the percentage change in labor productivity from July to August.

Labor productivity is a measure of output (unit sales in this case) divided by total labor hours

a) Labor productivity for the month of July = 300000/(200*40*4+50*15*4) = 8.57 units sold per labor hour

b) Labor productivity for the month of August = 360000/(200*40*4+40*20*4) = 10.23 units sold per labor hour

c) Percentage change in labor productivity from July to August = (10.23-8.57)/8.57 = 0.1932

= 19.32 %

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