Charles Lackey operates a bakery in Idaho​ Falls, Idaho. Because of its excellent product and excellent​ location, deman

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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. 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 1,800
loaves per month. The pay is $8 per hour per employee 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 $150 per​ month, but he will
achieve the same new output​ (an increase
to 2,250.00) as the change in labor hours.
a. Current productivity per labor dollar if the process requires
4 employees: = [ Select
] [".333", ".178", ".234",
".352"] loaves/dollar
b. If Charles must increase the total number of work hours to
790 in order to employ the new oven loading​ technique and meet the
increased demand, then the productivity would be ​
[ Select ]
[".356", ".167", ".364",
".723"] loaves/dollar
c. By adding​ manpower, the percentage increase in productivity
is [ Select ]
["5.7", "1.3", "1.9", "3.6"] %
d. If Charles instead chooses to purchase a new blender​ (while
holding labor constant at 640 hours at $8 per hour)​,
then the productivity is​ [
Select ] [".678", ".427", ".390",
".482"] loaves/dollar
e. By purchasing a new blender (while holding labor constant at
640 hours at $8 per hour), the percentage increase in productivity
is (comparing the answer in a. to the answer in d.)
[ Select ]
["23.89", "11.30", "18.56", "21.44"]