Charles lackey operates a bakery in idaho falls, idaho. because of its excellent product and excellent location, demand has increased by
3535%
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 staffmeeting, 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 comma 5001,500
loaves per month. employees are paid
$88
per hour. in addition to the labor cost, charles also has a constant utility cost per month of
$800800
and a per loaf ingredient cost of
$0.400.40.
current multifactor productivity for 640 work hours per month=
. 230.230
loaves/dollar (round your response to three decimalplaces).
after increasing the number of work hours to
864864
per
month,
the multifactor productivity =
. 187.187
loaves/dollar (round your response to three decimalplaces).