Reference no: EM132807448
Charles Lackey operates a bakery in Idaho? Falls, Idaho. Because of its excellent product and excellent? location, demand has increased by 55?% 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 production change that will be made in order to meet the increased demand.
The bakery currently makes 1,600 loaves per month.
Employees are paid ?$8 per hour.
In addition to the labor? cost, Charles also has a constant utility cost per month of ?$500 and a per loaf ingredient cost of ?$0.50.
a) What is the multifactor productivity for 640 work hours per month? (round to 3 decimal places)
b) What is the multifactor productivity for 992 work hours and an increase output of 55% ? (round to 3 decimal places)
c) What is the percentage of increased productivity?