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Charles Lackey operates a bakery in Idaho Falls, Idaho. Currently, the bakery has 4 employees, each one working 160 hours per month. Because of its excellent product and excellent location, demand has increased by 30% 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 stores, no new ovens can be added. Charles can improve the yield by one of these two options: (1) adding a new employee; (2) purchasing an improved blender. A new blender means an increase in his investment. This added investment has a cost of $1,200 per month. The total number of labor hours required per month is 640. The pay will be $8 per hour for employees. The bakery made 1,500 loaves this time last year. If utility costs remain constant at $500 per month, and cost of ingredients at $0.35 per loaf,
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