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Charles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent product and excellent location, demand has increased by 2 5 % in
Charles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent product and excellent location, demand has increased by 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. The bakery currently makes loaves per month. The pay is $ per hour per employee and each employee works 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 an increase in his costs of $ per month, but he will achieve the same new output an increase to as the
Complete calculation inside highlighted question cell
a Current productivity per labor dollar if the process requires employees: Blank
loavesdollar
b If Charles must increase the total number of work hours to order to employ the new oven loading technique and meet the increased demand, then the productivity would be Blank
loavesdollar
c By adding manpower, the percentage increase in productivity is Blank
d If Charles instead chooses to purchase a new blender while holding labor constant at hours at $ per hour then the productivity is Blank
loavesdollar
e By purchasing a new blender while holding labor constant at hours at $ per hour the percentage increase in productivity is comparing the answer in a to the answer in dBlank
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