Productivity is = ____ loaves/dollar ( Round response to three decimal places).

Question

Productivity is = ____ loaves/dollar ( Round response to three decimal places). roblem 1.14-Bookmatch Question Help Charles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent product and excelent location demand has r creased by 25% in the last year afar 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 staf 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. The bakery currently makes 1,500 loaves per month. The pay will be $8 per hour for employees and each employee works 160 hours per month. Charles Lackey can also improve the yield by purchasing a new blender. The new blender will mean an increase in his investment This new blender will mean arn increase in his costs of $100 per month, but he will achieve the same new output (an increase to 1,875) as the change in labor hours a) Current productivity for 640 work hours 0.293 loaves/dollar (round your reaponse to three decimal placeo) If Charles chooses to increase the number of work hours to 800 in order to employ the new oven loading technique, then the productivity is 0293loaves/dollar (round your response to three decimal places) b) If Charles stead chooses to purchase a new blender your response to three decimal places) while holding labor constant at 640 hors at $8 per hur then the p duch tys- aves1do lar nd

Explanation / Answer

B.

Productivity = No. of loaves as output / (labor cost + capital cost)

Productivity = 1875/(640*8 + 100)

Productivity = .3592 loaves per dollar

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