The Fine Feline Co. produces decorative collars for cats. Last week employees worked 320 hours and produced 32,000 cat collars. This week the workers worked the same 320 hours, but produced 33,600 cat collars. Labor productively increased by over last week.

5%

Explanation:

The computation of labor productivity is shown below:-

Cat collars produced last week = 32,000

This week cat collars = 33,600

Increase in cat collars unit = Cat collars produced last week - This week cat collars

= 33,600 - 32,000

= 1,600

Increase in labor productivity = Increase in units ÷ Initial production

= 1,600 ÷ 32,000

= 0.05

or

= 5%

Therefore for computing the labor productivity we simply divide increase in units by initial production.

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