Charles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent product and excellent location, demand has increased by 25% in the...

PLEASE HELP ME UNDERSTAND HOW SOLVE PROBLEM ABOUT SINGLE FACTOR PRODUCTIVITY RATE AND MULTI FACTOR PRODUCTIVITY RATE

Charles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent product and excellent location,demand has increased by 25% in the last year. On far too many occasions, customers have not been able to purchasethe bread oftheir choice. Because of the size ofthe store, no new ovens can be added. At a staff meeting, oneemployee suggested ways to load the ovens differently so that more loaves of bread can be baked at one time. Thisnew process will require that the ovens be loaded by hand, requiring additional manpower. This is the only thing to bechanged. The bakery currently makes 1,800 loaves per month. The pay will be $8 per hour for employees and eachemployee works 160 hours per month. Charles Lackey can also improve the yield by purchasing a new blender. Thenew blender will mean an increase in his investment. This new blender will mean an increase in his costs of $150 per month, but he will achieve the same new output (an increase to 2,250.00) as the change in labor hours. a. Current productivity for 640 work hours loaves/dollar = l SElECt l j b. If Charles chooses to increase the number of work hours to 790 in order to employ the new oven loading technique, then the productivity is [SElECtl j loaves/dollar c. By adding manpower, the percentage increase in productivity is [Select l :|% d. If Charles instead chooses to purchase a new blender (while holding labor constant at 640 hours at $8 per hour), then the productivity is [SElECtl j loaves/dollar e. By purchasing a new blender (while holding labor constant at 640 hours at $8 per hour), the percentage increase in productivity is l SEIEC’E l j