Question
Charles Lackey operates a bakery inVictoria, BC. Because of its excellent product and excellentlocation, demand has increased by 25% in the last year. On far
Charles Lackey operates a bakery inVictoria, BC. Because of its excellent product and excellentlocation, demand has increased by 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 1,500 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 permonth, but he will achieve the same output(an increase to 1,875) as the change in labour hours.
a) Show the productivitychange, in loaves perdollar, with an increase in labour hours(from 640 to 800hours).
Current productivity for 640 work hours=________ loaves/dollar (round your response to three decimalplaces).
If Charles chooses to increase the number of work hours to 800 in order to employ the new oven loadingtechnique, then the productivity is ________loaves/dollar (round your response to three decimalplaces).
b) Show the newproductivity, in loaves perdollar, with only an increase in investment($100 per monthmore).
If Charles instead chooses to purchase a new blender(while holding labour constant at 640 hours at $8 perhour), then the productivity is _________loaves/dollar (round your response to three decimalplaces).
c) Show the percent productivity change for labour and investment.
By addingmanpower, the percentage increase in productivity is
__________% (enter your response as a percentage rounded to two decimal places and include a minus sign ifnecessary).
By purchasing a new blender(while holding labour constant at 640 hours at $8 perhour), the percentage increase in productivity is _________% (enter your response as a percentage rounded to two decimal places and include a minus sign ifnecessary).
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started