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What is their multi-factor productivity currently

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1Charles Bakery in Idaho, makes 1,500 loaves every month. They estimate the demand to be 25% more than their current sales. Their current single factor productivity is 2.344 loaves per labor-hour. They pay $8 per labor-hour. Each baker works for 160 labor-hours per month. The utility cost remains constant at $500 per month. CoGS (cost of goods sold) is $0.35 per loaf. They have two choices to meet the demand:

1. Add manpower

2. Add a blender at the cost of $100 per month

What is their multi-factor productivity currently [that is before implementing any of the options]?

Give your answer in two decimals

Reference no: EM13884281

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What is their multi-factor productivity currently : 1Charles Bakery in Idaho, makes 1,500 loaves every month. They estimate the demand to be 25% more than their current sales. Their current single factor productivity is 2.344 loaves per labor-hour.
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