Productivity can be measured in a variety of ways, such as labels, capital energy, material usage, and so on. Mr Warren, a noted producer of apple pies sold to supermarkets, has been able with his urgent equipment to produce 24 pies per bushel of apples. He currently purchases 100 bushels per day, and each bushel required 3 labor hours to proceed. He believed that he can hire a professional food broker, who can buy a better quality apple at the same cost. If this is the case, he can increase his production to 26 pies per bushel. His labor hours will increase by 8 hours per day. What will be the impact on productivity (pies per labour hour) if the food broker is hired? Compute and explain.
Productivity can be measured in a variety of ways, such as labels, capital energy, material usage, and so on. Mr Warren, a noted producer of apple pies sold to supermarkets, has been able with his urgent equipment to produce 24 pies per bushel of apples. He currently purchases 100 bushels per day, and each bushel required 3 labor hours to proceed. He believed that he can hire a professional food broker, who can buy a better quality apple at the same cost. If this is the case, he can increase his production to 26 pies per bushel. His labor hours will increase by 8 hours per day.
What will be the impact on productivity (pies per labour hour) if the food broker is hired? Compute and explain.
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