Illustrations · Q9
Q.Two workers, A and B, work in the same department under a Straight Piece Rate of ₹15 per unit. In a day, Worker A produces 180 units and Worker B produces 240 units. Compute the wages of each worker, and comment on how the piece-rate system rewards the difference in their output.
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Start your 14-day free trial to unlock the full solution →Worker A: Wages = 180 units × ₹15 = ₹2,700
Worker B: Wages = 240 units × ₹15 = ₹3,600
Comment: B produced 60 more units than A (240 − 180) and earned exactly 60 × ₹15 = ₹900 more (₹3,600 − ₹2,700 = ₹900). This confirms the defining feature of Straight Piece Rate: reward rises in STRICT, LINEAR PROPORTION to output — there is no bonus for crossing any particular output threshold, and no penalty for falling short of one, unlike the Differential Piece Rate schemes covered later in this chapter, which apply a DIFFERENT (higher) rate once …
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