A firm produces 500 units per day using five workers on a five-hour shift. On average, 15% of the units produced are defective and must be scrapped. What is the labor productivity for non-defective units?

17 units per hour or 85 units per labor

Explanation:

The per hour productivity of a single labor for non-defective units is 17.

You can come to this conclusion using following mathematical calculation

STEPS:

1. 500 units (15% defective)

500 - (15% of 500) = 425 units

2. 5 workers working a 5 hour shift, 425 units divided by 5 hours

425/5 = 85 units per hour

3. 85 units are produced in an hour divided by 5 workers

85/5 = 17 units per worker

Thus 17 non-defective units are produced by a single worker in an hour.