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Peter operates a bakery in Mong Kok. Currently, there are four workers in the bakery and the bakery produces 1000 loaves of bread per month.
Peter operates a bakery in Mong Kok. Currently, there are four workers in the bakery and the bakery produces 1000 loaves of bread per month. Because of the bakery's excellent product and location, many customers have not been able to purchase the bread of their choice. Peter estimated that 50% more output (i.e. 1500 loaves of bread) should be produced to meet the growing demand. Because of the size of the store, no new ovens can be added. 1. At a staff meeting, one employee suggested a new way 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 two more additional workers. This is the only thing to be changed. Suppose each worker works 200 hours per month. Currently, the hourly pay for each worker is $50. Calculate the productivity in loaves of bread per dollar. Round the number to 3 decimal places. 2. In addition to the staff's suggestion, Peter finds that the current output can be increased by 50% by using a new blender which takes less time to make the bread. Although the new blender is an added investment which has a cost of $15,000 per month, no additional workers or labor hours are needed. Peter wants to know whether adding a new blender is better choice than recruiting more worker. Please help Peter to make the decision. Round the number to 3 decimal places
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