CMA Foundation · Fundamentals of Business Economics and Management · Means of Production
A workshop in Ludhiana has 6 workers who each make 10 complete bicycle frames a day working alone. After the work is divided into specialised stages, the 6 workers together produce 90 frames a day. What is the percentage increase in output per worker?
Output per worker rises by 50 per cent. Earlier the six workers made 60 frames in total, and after specialisation they make 90, an increase of 30 frames, which is half of the original 60. Using 90 as the base would wrongly give 33.33 per cent.
- A50%Correct
- B90%
- C33.33%
- D150%
Explanation
Earlier total output was 6 x 10 = 60 frames. New output is 90 frames. Increase = 30, and 30/60 x 100 = 50%. Option 90% wrongly uses the new output as the percentage, and 33.33% uses the new output as the base (30/90).
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