Charles Lackey operates a bakery in Idaho Falls daho. Because o its excellent pr

Question

Charles Lackey operates a bakery in Idaho Falls daho. Because o its excellent product and excellent location, demand has increased by 35% n he last year. On ar 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 s he only in to echanged he a er currently make ,500 espe month The pay will be S8 per hour for employees and each employee works 160 hours per month. Charles Lackey can also improve the yield by purchasing a new blender. The new blender will mean an increase in his investment. This new blender will mean an increase in his costs of $125 per month, but he will achieve the same new output (an increase to 2,025.00) as the change in labor hours. a) Current productivity for 640 work hours- loaves dolar und your response to three dec mal paces

Explanation / Answer

Current production = 1500 loaves/month

Employee pay = 8 $/hour

a) Current productivity for 640 work hours = (1500/640) = 2.344 loaves/hour

Productivity in loaves/dollar = 2.344/8 = 0.293 loaves/$

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---