A retail store had sales of 45000 in April and 56000 in May

A retail store had sales of $45,000 in April and $56,000 in May. The store employs 8 full time workers (they work a 40 hour work week). In April the store also had seven part-time workers at 10th hours per week, and in May the store had nine part-timers at 15 hours per week (assume four weeks in each month). Using sales dollars as the measures of output, what is the percentage change in productivity from April to May?

Solution

sales in April- $45,000, full time workers 5, and part time workers 7. the total working hours are=

=8*40+7*10= 390 hours, per worker output in dollars= 45,000/390= $115.38 per hour

sales in May- $56,000, 9 part time workers at 15 hours per worker and 8 full time workers

total hours of work= 8*40+9*15= 455 hours

average per worker output in dollars= 56,000/455= $123.08

the change in productivity= 123.08- 115.38/ 115.38= 7.7/115.38= 6.67%