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23 September, 12:35

A company used to produce 300 units every day, but 20% of the units were defective. After installing a new process, the defect rate has been reduced to 5%, while output has remained the same. What is the percent increase in productivity due to installing the new process? A. 15.00% B. 0.00% C. 18.75% D. 15.79% E. - 75.00%

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  1. 23 September, 12:38
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    The correct option is C, the increase in productivity is 18.75%

    Explanation:

    The quantity before installing the new process = (100%-20%) * 300

    That is 80% of 300units=240units

    The quantity after installation is (100%-5%) * 300

    That is 95% of 300=285units

    The increase is 45units (285-240)

    Hence % increase = 45/240*100=18.75%

    That is 18.75% increase in production output due to the installation of the new process
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