a) For 640 work hours, Labor cost per month = 640 work hours * $ 8 per hour = $ 5120 per month
Current productivity for 640 work hours = Output / Labor cost = 1500 loaves per month / $ 5120
= 0.293
After improved loading process, Output increases by 35% = 1500*1.35 = 2025 loaves per month
Productivity = 2025 / (864*8) = 0.293
b) Productivity = Output / Total cost = 2025 / (640*8 + 125)
= 0.386
c) By adding manpower, the percentage increase in productivity = (0.293-0.293)/0.293 = 0 %
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