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Chapter 1, Problem 9DQ
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To determine: The reason why U Country and other countries around the world are known as the “knowledge society”. How this affects the measurement of productivity among the Country U and other nations.

Introduction: Productivity is a measure of the effectiveness of an individual, systems, machinery and other equipment that are used in converting inputs into outputs. In all organizations, productivity is an important determinant to know cost efficiency.

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a) Last week employees at Bluegill produced 46 chairs after working a total of 200hours. Of the 46 chairs produced, 12 were damaged due to a problem with thenew sanding machine. The damaged chairs can be discounted and sold for K250each. The undamaged chairs are sold to a department store retail chain for $700each.(i) What was the labor productivity ratio for last week? (ii) If labor productivity was $150 in sales per hour the previous week, whatwas the change in labor productivity as a percentage?b) In the bakery, the design capacity is 30 pies per day and effective capacity is 20pies per day. Currently, the bakery is producing 27 pies per day. What is thebakery’s capacity utilization relative to both design and effective capacity?
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