Q13&14

a) Calculate the company's productivity before the change in work ing, a ith the rules and after the change. b) What is the percentage increase in productivity? ) If production is increased to 700 boxes per day, what is the new productivity? Px 1.13 Charles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent product and excellent location, demand has increased by 25% in the last year. On far too many occasions, cus- tires at tomers 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 Upton staff meeting, one employee suggested ways to load the ovens differ- ently so that more loaves of bread can be baked at one time. This new Upton process will require that the ovens be loaded by hand, requiring addi- 8 pro- tional manpower. This is the only thing to be changed. If the bakery makes 1,500 loaves per month with a labor productivity of 2.344 eased loaves per labor-hour, how many workers will Lackey need to add? fairly (Hint: Each worker works 160 hours per month.) , the1.14 Refer to Problem 1.13. The pay will be $8 per hour for nvest employees. Charles Lackey can also improve the yield by purchas- nake ing a new blender. The new blender will mean an increase in his d to investment. This added investment has a cost of $100 per month, but u to he will achieve the same output (an increase to 1,875) as the change over in labor-hours. Which is the better decision? fica- a) Show the productivity change, in loaves per dollar, with an increase in labor cost (from 640 to 800 hours). b) Show the new productivity, in loaves per dollar, with only an increase in investment ($100 per month more). c) Show the percent productivity change for labor and investment. ..1.15 Refer to Problems 1.13 and 1.14. If Charles Lackey's utility costs remain constant at $500 per month, labor at $8 per hour and cost of ingredients at $0.35 per loaf, but Charles does not pur chase the blender suggested in Problem 1.14, what will the productiv ity of the bakery be? What will be the percent increase or decrease? 1.16 In December, General Motors produced 6,600 cus tomized vans at its plant in Detroit. The labor produ this plant is known to have been 0.10 vans per labor-hour during