Mrs. Sweetie operates a cookies shop in Kowloon City. The most popular and excellent products are chocolate, peanut chips and Butterfly Crisp. Especially the Butterfly crispy, the demand is increased and many customers complain that they could not purchase the excellent cookies. Mrs. Sweetie estimated that 20% more output should be produced to meet the growing demand. Mrs. Sweetie suggested a new ovens can be added. However, the manager suggested that we can hire more workers so that more cookies can be baked at one time. The requiring additional manpower can speed up the process in producing more cookies. This is the only thing to be changed.

a) If the cookies shop currently makes 2000 Butterfly crispy and 1000 chocolate and peanut chips with current 60 labors, how many more workers, who are as productive as the current ones, will Mrs. Sweeties need to hire more workers to achieve the new output? Each worker works 50 hours per week. Assume four weeks per month. (6 marks)

In addition to the managers suggestion, Mrs. Sweetie found that the current output can be increased by 20% by using a new oven which takes less time to make the cookies. Although the new investment of a new oven which is cost $20,000 per month, we do not need any additional worker. Currently, the hourly pay for each worker is $80. Mrs. Sweeties wants to know whether hiring more workers or buying a new oven is better.

b) Taking all inputs into consideration, show the productivity, in a piece of cookie per dollar for the first option. Round the number to 4 decimal places. (4 marks)

c) Show the productivity for buying a new oven in piece of cookies for the second option. Round the number to 4 decimal places. (4 marks)

d) What is the productivity percentage difference between two options? What would you suggest Mrs. Sweeties to make if the decision is based on productivity, explain? (3 marks)

e) What is the maximum weekly investment in the new oven? (3 marks)