Problem 2: 2(a): Productivity = (# of chairs for 2 weeks)/(total labor cost for 2 weeks) = [(10 workers) x( 8 hr/day/worker) x (2 chairs/hr) x (5 days/week)) + (20 x 8 x 5 x 2)] /[ (10 x 8 x 5 x $10) + (20 x 8 x 5 x $8)] = (800+ 1600) chairs / ($4000 + $6400) = .2307 chairs/$ 2(b): Productivity after change = (15 x 8 x 5 x 2 chairs) / (15 x 8 x 5 x $8.5) = 1200/$5100 = .2352 chairs/$ Productivity increased (or, unit cost for chair decreased) after the change