Larry's Auto Body Repair Shop had revenues that averaged $60,000 per week in April and $50,000 per week in May. During both mont

Question

2 months ago

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Larry's Auto Body Repair Shop had revenues that averaged $60,000 per week in April and $50,000 per week in May. During both mont

hs, the shop employed six full-time (40 hours/week) workers. In April the firm also had four part-time workers working 25 hours per week but in May there were only two part-time workers and they only worked 10 hours per week. What is the percentage change in labor productivity from April to May for Larry's Auto Body Repair?

Business

1 answer:

Nady [3.6K] · Answer 1 · 2026-03-11T20:07:14+03:00

Answer:

-2.3%

Explanation:

Labor productivity is a measure of the output generated per unit of labor.

labor productivity = total output / total labor hours

Total labor hours in April = (6 employees x 40 hours) + (4 employees x 25 hours) = 340 hours. Thus, labor productivity in April: total output = $60,000 / total labor hours = $176.47 per labor hour.

Total labor hours in May = (6 employees x 40 hours) + (2 employees x 25 hours) = 290 hours; thus labor productivity in May = total output / total labor hours = $50,000 / 290 hours = $172.41 per labor hour.

The change in labor productivity is calculated as follows: ($172.41 - $176.47) / $176.47 = -2.3%.