Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 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 production change that will be made in order to meet the increased demand. The bakery currently makes 1 comma 500 loaves per month. Employees are paid $8 per hour. In addition to the labor cost, Charles also has a constant utility cost per month of $650 and a per loaf ingredient cost of $0.40.
Part 2
Current multifactor productivity for 640 work hours per month=
0.235loaves/dollar (round your response to three decimal places).
Part 3
After increasing the number of work hours to 800 per month, the multifactor productivity=
enter your response here loaves/dollar (round your response to three decimal places).

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Management

Authors: Robbins, DeCenzo, Coulter

7th Edition

132996855, 0-13-610982-9 , 9780132996853, 978-0-13-61098, 978-0136109822

More Books

Students also viewed these General Management questions