Charles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent
ID: 3237569 • Letter: C
Question
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, 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. (Productivity remains the same.) If the bakery currently makes 1, 600 loaves per month with a labor productivity of 2, 344 loaves per labor hour, then Lackey will need to add worker(s) to meet the increased demand (recall that each worker works 160 hours per month and round your response up to the next whole number).Explanation / Answer
Monthly output of one worker = 2.344 (total loaves per labor-hour) x 160 (hours each worker works per month) = 375.04 loaves
Increased demand = 25% 1,600 loaves per month
1,600 X 25% = 400
additional loaves per month needed
400/375.04 = 1.07
Lackey will need to add one more worker in order for the work to get done because the monthly output of one worker is equal to 375.04 loaves and the additional loaves per month needed is 400, so all it will take is one worker to complete it.