) Il production is increased to 700 boxes per day, what is the new productivity?
ID: 416974 • Letter: #
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) Il production is increased to 700 boxes per day, what is the new productivity? Px 1.12 Charles Lackey operates a bakery in Idaho Falls Idaho. Because of its excellent product and excellent location. demand has increased by 25%, in the last year. On far too many occasions, customers have not been able to purchase the bread of their choice. Because of the size of the store, no new ovens can be added. At a staff meeting, one employee suggested ways to load the ovens differently so that more loaves of bread can be baked at one time. This new process will require that the ovens be loaded by hand, requiring additional manpower. This is the only thing to be changed. If the bakery makes 1,500 loaves per month with a labor productivity of 2.344 loaves per labor-hour, how many workers will Lackey need to add? (Hint: Each worker works 160 hours per month.) 1.13 Refer to Problem 1.12. The pay will be $8 per hour for employees. Charles Lackey can also improve the yield by purchasing a new blender. The new blender will mean an increase in his investment. This added investment has a cost of S100 per month, but he will achieve the same output (an increase to 1,875) as the change in labor-hours. Which is the better decision? a) Show the productivity change, in loaves per dollar, with an b) Show the new productivity, in loaves per dollar, with only an c) Show the percent productivity change for labor and increase in labor cost (from 640 to 800 hours). increase in investment ($100 per month more). investment 1.14 Refer to Problems 1.12 and 1.13. If Charles Lackey utility costs remain constant at $500 per month, labor at $8 per hour, and cost of ingredients at $0.35 per loaf, but Charles does not purchase the blender suggested in Problem 1.13, what will the productivity of the bakery be? What will be the percent increase or decrease? 115 In December, General Motors produced 6,600 cusExplanation / Answer
1.12
Given labor productivity = 2.344 loaves per labor-hour
Output of one worker per month= 2.344*160 hours = 375.04 loaves per month
Given there is increased demand by 25%
Increased demand = 1500*25% = 375 loaves
Then addition workers to be required = Increased demand / output of one worker per month = 375/375.04 = 0.999
Lackey need to add one employee for the work to be done.
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