2.2 At Modern Lumber Inc, Moise Ngwenya the producer of apple crates sold to growers, has been able with his current equipment, to produce 240 crates per 100 logs. He currently purchases 100 logs per day, and each log requires 3 labor-hours to process. He believes that he can hire a professional buyer who can buy a better-quality log at the same cost. If this is the case, he can increase production to 260 crates per 100 logs. His labour hours will increase by 8 hours per day. What will be the impact on productivity (measured in crates per labor-hour) if the buyer is hired?

Marketing
20th Edition
ISBN:9780357033791
Author:Pride, William M
Publisher:Pride, William M
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 6DRQ
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2.2 At Modern Lumber Inc, Moise Ngwenya the producer of apple crates sold to growers, has been able
with his current equipment, to produce 240 crates per 100 logs. He currently purchases 100 logs per
day, and each log requires 3 labor-hours to process. He believes that he can hire a professional
buyer who can buy a better-quality log at the same cost. If this is the case, he can increase production
to 260 crates per 100 logs. His labour hours will increase by 8 hours per day. What will be the impact
on productivity (measured in crates per labor-hour) if the buyer is hired?
Transcribed Image Text:2.2 At Modern Lumber Inc, Moise Ngwenya the producer of apple crates sold to growers, has been able with his current equipment, to produce 240 crates per 100 logs. He currently purchases 100 logs per day, and each log requires 3 labor-hours to process. He believes that he can hire a professional buyer who can buy a better-quality log at the same cost. If this is the case, he can increase production to 260 crates per 100 logs. His labour hours will increase by 8 hours per day. What will be the impact on productivity (measured in crates per labor-hour) if the buyer is hired?
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