Refer to problems 1.13 and 1.14. if charles lackey’s utility costs remain constant at $500 per month, labor at $8 per hour, and cost of ingredients at $0.35 per loaf, but charles does not purchase the blender suggested in problem 1.13, what will the productivity of the bakery be? what will be the percent increase or decrease?
1.13. 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. as 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 makes 1,500 loaves per month with a labor productivity of 2.344 loaves per labor-hour, how many workers will lackey need to add?
1.14. refer to problem 1.13. the pay will be $8 per hour for employees. charles lackey can also improve the yeild by purchasing a new blender. the new blender will mean a new increase in his investement. this added investment has a cost of $100 per month, but he achieve the same output (an increase to 1,875) as the change in labor hrs. which is the better decision?
(a) show the productivity change, in loaves per dollar, with an increase in labor cost (fro 640-800 hours).
(b) show the new productivity, in loaves per dollar, with only an increase in investment ($100 per month more)
(c) show the new productivity change for labor and investment.