SOLUTION: Please help. An operation has a 10 percent scrap rate. As a result, 72 pieces per hour are produced. What is the potential increase in labor productivity that could be achieve

Question 157524: Please help. An operation has a 10 percent scrap rate. As a result, 72 pieces per hour are produced. What is the potential increase in labor productivity that could be achieved by eliminating the scrap?
The answer is 11.1%, but I don't know how to they got it?
Answer by josmiceli(19441) (Show Source): You can put this solution on YOUR website!
The 72 pcs/hr that are produced are NOT scrap
If there is 10% scrap, then
90% x (production + scrap) = 72 pcs/hr

pcs/hr
The percent increase in production is

or about 11.1%
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