A catering company prepared and served 300 meals at an anniversary celebration last week using eight workers. The week before, six workers prepared and served 240 meals at a wedding reception. A. For which event was the labor productivity higher? Explain. B. What are some possible reasons for the productivity differences?

Case 2 has higher labor productivity

Explanation:

A. Labor Productivity = Total output / Total Input of labor

Case 1.

Given:

Total output of meals = 300 meals

Total Input of labor = 8 worker

Labor Productivity for case 1. = 300 meals / 8 worker

                                                = 37.5 meals/worker

Case 2.

Given:

Total output of meals = 240 meals

Total Input of labor = 6 worker

Labor Productivity for case 1. = 240 meals / 6 worker

                                                = 40 meals/worker

So, we say that In case 2. labor productivity is higher.

B. The major difference is as follows:

The efficiency level of the worker in case 2 is better than case 1

(by providing better training and management)

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