Percent change in productivity between the two scenarios


Question: A fast-food restaurant serves hamburgers, cheeseburgers, and chicken sandwiches. The restaurant counts a cheeseburger as equivalent to 1.25 hamburgers and chicken sandwiches as 0.8 hamburger. Current employment is five full-time employees (each working a 40-hour week).

a) If the restaurant sold 700 hamburgers, 900 cheeseburgers, and 500 chicken sandwiches in one week, what is its productivity?

b) What would its productivity have been if it had sold the same number of sandwiches (2,100) but the mix was 700 of each type?

c) What is the percent change in productivity between the two scenarios using a) as the base? Explain why there is a difference in the productivity even though the total time worked and the total number of sandwiches are the same between the two scenarios.

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Accounting Basics: Percent change in productivity between the two scenarios
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