Charles Lackey operales a bakery in idaho Fals, idaho. Because of its excellent product and excelent location, demand has increased by 25% in the last year. On far loo many occasions, customers have not been able to purchase the bread of their choice. Because of the sire of the store, no new ovens can be added. At a statf 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, requring 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 Employees are paid $8 per hour. In addtion to the labor cost Charles also has a constant utity cost per month of $850 and a per loaf ingredient cost of $0.50 Curent multtactor productivity for 640 work hourn per month - 0223 loavesidolar (round your response to three decimal places) Aher increasing the number of work hours to 00 per month, the mutfactor productivity ovenidoltar (round your response to thre decimal places).
Charles Lackey operales a bakery in idaho Fals, idaho. Because of its excellent product and excelent location, demand has increased by 25% in the last year. On far loo many occasions, customers have not been able to purchase the bread of their choice. Because of the sire of the store, no new ovens can be added. At a statf 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, requring 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 Employees are paid $8 per hour. In addtion to the labor cost Charles also has a constant utity cost per month of $850 and a per loaf ingredient cost of $0.50 Curent multtactor productivity for 640 work hourn per month - 0223 loavesidolar (round your response to three decimal places) Aher increasing the number of work hours to 00 per month, the mutfactor productivity ovenidoltar (round your response to thre decimal places).
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 6DRQ
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Transcribed Image Text:Charles Lackey operates a bakery in Idaho Fals, Idaho. Because of its excellent product and excelent location, demand has inoreased by 25% in the last year. On far boo 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 statf meeting, one employee suggested ways to load the
ovens differently eo 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, Employees are paid S8 per hour. In addtion to the labor cost.
Charles also has a constant utity cost per month of $850 and a per loaf ingredient cost of $0.50
Current multtactor productivity for 640 wark hourn per month - 0223 loavesidolar (round your response to three decimal places)
Ater increasing the number of work hours to 800 per month, the mutfactor productivity kovenidolar (round your rosponse to thre decimal places)
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