Charles Lackey operates a bakery in Victoria, BC. Because of its excellent product and excellent location, demand has increased by 35% 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 1,500 loaves per month. The pay is $8 per hour for employees and each employee works 160 hours per month. If Charles Lackey's utility costs remain constant at $700 per month, labour at $8 per hour, and cost of ingredients at $0.50 per loaf, what will the productivity of the bakery be? What will be the percent increase or decrease? Current multifactor productivity for 640 work hours = loaves/dollar (round your response to three decimal places).

Practical Management Science
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Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Charles Lackey operates a bakery in Victoria, BC. Because of its excellent product and excellent location, demand has
increased by 35% 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 1,500 loaves per month. The pay is $8 per hour for
employees and each employee works 160 hours per month. If Charles Lackey's utility costs remain constant at $700 per
month, labour at $8 per hour, and cost of ingredients at $0.50 per loaf, what will the productivity of the bakery be? What
will be the percent increase or decrease?
Current multifactor productivity for 640 work hours =
loaves/dollar (round your response to three decimal places).
Transcribed Image Text:Charles Lackey operates a bakery in Victoria, BC. Because of its excellent product and excellent location, demand has increased by 35% 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 1,500 loaves per month. The pay is $8 per hour for employees and each employee works 160 hours per month. If Charles Lackey's utility costs remain constant at $700 per month, labour at $8 per hour, and cost of ingredients at $0.50 per loaf, what will the productivity of the bakery be? What will be the percent increase or decrease? Current multifactor productivity for 640 work hours = loaves/dollar (round your response to three decimal places).
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