Charles Lackey operates a bakery in Idaho? Falls, Idaho. Because of its excellen
ID: 338198 • 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 production change that will be made in order to meet the increased
demand.
The bakery currently makes
1,600
loaves per month. Employees are paid
?$8
per hour. In addition to the labor? cost, Charles also has a constant utility cost per month of
?$500
and a per loaf ingredient cost of
?$0.35.
Current multifactor productivity for 640 work hours per month? =
?loaves/dollar ?(round your response to three decimal? places).
After increasing the number of work hours to
800
per
month?,
the multifactor productivity? =
?loaves/dollar ?(round your response to three decimal? places).
The percentage increase in productivity? =
?%
?(enter your response as a percentage rounded to two decimal? places)
Explanation / Answer
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 production change that will be made in order to meet the increased
demand.
The bakery currently makes
1,600
loaves per month. Employees are paid
?$8
per hour. In addition to the labor? cost, Charles also has a constant utility cost per month of
?$500
and a per loaf ingredient cost of
?$0.35.
Current multifactor productivity for 640 work hours per month? =
?loaves/dollar ?(round your response to three decimal? places).
After increasing the number of work hours to
800
per
month?,
the multifactor productivity? =
?loaves/dollar ?(round your response to three decimal? places).
The percentage increase in productivity? =
?%
?(enter your response as a percentage rounded to two decimal? places)