Posted on by Judy

Charles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent product and excellent location, demand has increased by 45% 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 1,500 loaves per month. Employees are paid S8 per hour. In addition to the labor cost, Charles also has a constant utility cost per month of $750 and a per loaf ingredient cost of $0.40. Current multi actor productivity or 640 work hours per month 「loaves/dollar your response to three decimal paces our

Output = 1500 loaves
Employees are paid $8 per hour. So a 640 work hour per month, labor cost = 640 hours x $8 = $5120
Per month utility cost = $750
Ingredients cost per loaf = $0.40.So for 1500 loaves per month, ingredients cost = 1500x$0.40 = $600
Total cost = labor cost + utility cost + ingredient cost
= $5120 + $750 + $600
= $6470
Multifactor productivity = output / Total cost
= 1500 loaves / $6470
= 0.232 loaves per dollar
 
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  2. roblem 1.14-Bookmatch Question Help Charles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent product and excelent location demand has r creased by 25% in the last year afar 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 staf 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. The bakery currently makes 1,500 loaves per month. The pay will be $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 arn increase in his costs of $100 per month, but he will achieve the same new output (an increase to 1,875) as the change in labor hours a) Current productivity for 640 work hours 0.293 loaves/dollar (round your reaponse to three decimal placeo) If Charles chooses to increase the number of work hours to 800 in order to employ the new oven loading technique, then the productivity is 0293loaves/dollar (round your response to three decimal places) b) If Charles stead chooses to purchase a new blender your response to three decimal places) while holding labor constant at 640 hors at $8 per hur then the p duch tys-□ aves1do lar nd
  3. roblem 1.14-Bookmatch Question Help Charles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent product and excelent location demand has r creased by 25% in the last year afar 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 staf 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. The bakery currently makes 1,500 loaves per month. The pay will be $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 arn increase in his costs of $100 per month, but he will achieve the same new output (an increase to 1,875) as the change in labor hours a) Current productivity for 640 work hours 0.293 loaves/dollar (round your reaponse to three decimal placeo) If Charles chooses to increase the number of work hours to 800 in order to employ the new oven loading technique, then the productivity is 0293loaves/dollar (round your response to three decimal places) b) If Charles stead chooses to purchase a new blender your response to three decimal places) while holding labor constant at 640 hors at $8 per hur then the p duch tys-□ aves1do lar nd
  4. Charles Lackey operates a bakery n ldaho Falls Ida Because of its excellent product and excelent location, demand has increased by 35% n the 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 is the only thing to be changed. The bakery currently makes 1,500 loaves per month. The pay will be $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 S125 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 hours293 loaves/dollar (round your response to three decimal places) If Charles chooses to increase the number of work hours to 864 in order to employ the new oven loading technique, then the productivity is293 loaves/dollar (round your response to three decimal places). b)f Charles instead chooses to purchase a new blender (while holding labor constant at 640 hours at $8 per hour), then the productivity is386 loaves/dollar (round your response to three decimal places) c) By adding manpower, the percentage increase in productivity is% (enter your response as a percentage rounded to two decimal places and include a minus sign if necessary)