Charles Lackey operates a bakery in Victoria, BC. 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 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 added investment has a cost of

$

per month, but he will achieve the same output (an increase to

)

as the change in labour hours.

Part 2

a) Show the productivity change, in loaves per dollar, with an increase in labour hours (from 640 to 800 hours).

Current productivity for 640 work

hoursenter your response here

loaves/dollar (round your response to three decimal places).

Part 3

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

enter your response here

loaves/dollar (round your response to three decimal places).

Part 4

b) Show the new productivity, in loaves per dollar, with only an increase in investment ($100 per month more).

If Charles instead chooses to purchase a new blender (while holding labour constant at 640 hours at

$

per hour), then the productivity is

enter your response here

loaves/dollar (round your response to three decimal places).

Part 5

c) Show the percent productivity change for labour and investment.

By adding manpower, the percentage increase in productivity is

enter your response here%

(enter your response as a percentage rounded to two decimal places and include a minus sign if necessary).

Part 6

By purchasing a new blender (while holding labour constant at 640 hours at

$

per hour), the percentage increase in productivity is

enter your response here%

(enter your response as a percentage rounded to two decimal places and include a minus sign if necessary).

Charles Lackey operates a bakery in Victoria, BC. 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. The bakery currently makes 1,500 loaves per month. The pay is $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 added investment has a cost of $100 per month, but he will achieve the same output (an increase to 1,875 ) as the change in labour hours. a) Show the productivity change, in loaves per dollar, with an increase in labour hours (from 640 to 800 hours). Current productivity for 640 work hours = loaves/dollar (round your response to three decimal places). 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 loaves/dollar (round your response to three decimal places). b) Show the new productivity, in loaves per dollar, with only an increase in investment ( $100 per month more). If Charles instead chooses to purchase a new blender (while holding labour constant at 640 hours at $8 per hour), then the productivity is loaves/dollar (round your response to three decimal places). c) Show the percent productivity change for labour and investment. By adding manpower, the percentage increase in productivity is % (enter your response as a percentage rounded to two decimal places and include a minus sign if necessary). By purchasing a new blender (while holding labour constant at 640 hours at $8 per hour), the percentage increase in productivity is % (enter your response as a percentage rounded to two decimal places and include a minus sign if necessary)