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Business, 14.10.2020 14:01 bloodry

Charles Lackey operates a bakery in Idahoâ Falls, Idaho. Because of its excellent product and excellentâ location, demand has increased by 45â% in the last year. On far too manyâ occasions, customers have not been able to purchase the bread of their choice. Because of the size of theâ store, no new ovens can be added. At a staffâ 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 byâ hand, requiring additional manpower. This is the only thing to be changed. The bakery currently makes 1,800 loaves per month. The pay will be â$8 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 â$100 perâ month, but he will achieve the same new outputâ (an increase to 2,610.00â) as the change in labor hours. âA. Current productivity for 640 work hoursâ = loaves/dollar. B. After increasing the number of work hours to 864 per month, the multifactor productivity =â .

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Charles Lackey operates a bakery in Idahoâ Falls, Idaho. Because of its excellent product and excell...
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