Answer: Option (a) is correct.
Explanation:
Given that,
In 2010,
Bags of pretzels produced = 300,000
Employing = 12,000 hours of labor
Acme Foods productivity = [tex]\frac{300,000}{12,000}[/tex]
= 25 bags of pretzels produced per labor hour
In 2011,
Bags of pretzels produced = 322,000
Employing = 14,000 hours of labor
Acme Foods productivity = [tex]\frac{322,000}{14,000}[/tex]
= 23 bags of pretzels produced per labor hour
Therefore,
Acme Foods productivity decreased by = [tex]\frac{Productivity\ in\ 2010\ - Productivity\ in\ 2011}{Productivity\ in\ 2010} \times100[/tex]
= [tex]\frac{25 - 23}{25} \times100[/tex]
= 8%
