Productivity can be measured in a variety of ways, such as by labor, capital, energy, material, usage, and so. at nodern lumber inc , art bintley, president and producer of apple gratea sold to grower, has been able, with his current equipment to produce 240 crates per 100 logs. he currently purchase 100 logs per day, and each log require 3 labor- hours to process. he believes that he can hire a professional buyers who can buy a better - quality log at the same cost. if this is the case, he can increase his product production to 260 crates per 100 logs. his labor- hour will increase by 8 hours a day. what will be impact on productivity ( measure in crates per labor "-hour)" if the buyer it hired?
SOLUTION
240 crates
(a) Current labor productivity=
100 logs x 3 hour/ ?
= 240
300
= .8 crates per labor-hour

(b) Labor productivity with buyer= 260 crates
( 100 logs x 3 hourrs/log+?
260
= 308
= .844 crates per labor- hour
Using current productivity (. 80 From {a}) as a base, crease will be 5.5% .8 =1.055, or a 5.5% or a 5.5% increase)