Question
Charles Lackey operates a bakery in IdahoFalls, Idaho. Because of its excellent product and excellentlocation, demand has increased by 25 25% in the last year.
Charles Lackey operates a bakery in IdahoFalls, Idaho. Because of its excellent product and excellentlocation, demand has increased by 25
25% in the last year. On far too manyoccasions, customers have not been able to purchase the bread of their choice. Because of the size of thestore, no new ovens can be added. At a staffmeeting, 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 byhand, requiring additional manpower. This is the only thing to be changed.The bakery currently makes 1 comma 500
1,500 loaves per month. The pay will be $8
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 an increase in his costs of $100
100 permonth, but he will achieve the same new output(an increase to 1 comma 875
1,875) as the change in labor hours.
a) Current productivity for 640 work hours=
nothing
loaves/dollar (round your response to three decimalplaces).
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