Score 1 of 5 pts 11 of 21 19 complete N Score 7083 2125 of 3

Score: 1 of 5 pts 11 of 21 (19 complete) N Score: 70.83%, 21.25 of 30. Problem 1.13 product and by 35% in the last year. On far too many choice. Because of the size of the store, no new ovens can be added. At a staff meeting, one employee ways to ovens I manpower. This is the only thing to be changed. The bakery currently makes 1,600 in his Charles Lackey can also improve the yield by purchasing a new blender. The new blender will mean an (an increase to 2,160.00) as the change in labor hours. a) Current productivity for 640 work hours 313 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 is = 0.313 loaves/dollar (round your response to three decimal places). productivity is = A10 loaves/dollar (round your response to three decimal places). c) By adding manpower, the percentage increase in productivity is 1% enter your response as a percentage rounded to two remaining

Solution

(a)

Current Output = 1600 loaves
Current input labor-hours = 640 x $8 = $5,120

So, current productivity = 1600 / 5120 = 0.313 loaves/ dollar

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New output = 1600 x 1.35 = 2160
New labor hour input cost = 864 x $8 = $6,912

So, productivity = 2160 / 6912 = 0.313 loaves/ dollar

(b)

New output = 1600 x 1.35 = 2160
Existing input labor-hours = 640 x $8 = $5,120
Cost of blending = $150

So, productivity = 2160 / (5120+150) = 0.410 loaves/ dollar

(c)

By adding manpower, the % increase in productivity = 0%

By adding blender the % increase in productivity = (0.410 - 0.313) / 0.313 = 30.99%