Charles Lackey coerates a bakery in idaho Falls, Idaho. Because of its exoellent product and excetere locasion, demand has increased by 35% in the last year, On far too many oceasicns, customers have not been atle lo purchase the tread of their choce. Because of the size of the soce, no new ovens can be added. At a staff meetng. one employee suggestod ways to lond the ovens differently so that moee loaves of bread can be baked at one ime. This new process will require that the ovens be loaded by hand, requirng addilional manpower. This is the only production change that will be made in ordor to meet the increased demand. The bakery currenty makes 1,500 loaves per month. Enployees are pald \$a per hour. In adston to the labor cost, Charies alse has a constant ubify cost per month of $600 and a per loaf inpredient cost of $0,35. Current multifactor productivity tor 640 work hours per month = ____ loaves/dollar (round your response to fhwe decimal places). After increasing the number of work hours to 864 per month, the multiactor productivay = ____ loaves/dollar (round your nosponse fo three docimal placesy.

Q&A Education