Refer to Problem 1.12. The pay will be $8 per hour for employees. Charles Lackey can also improve the yield by purchasing a new blender. The new blender will mean an increase in his investment. This added investment has a cost ••1.13 of $100 per month, but he will achieve the same output (an increase to 1,875) as the change in labor-hours. Which is the better decision? a) Show the productivity change, in loaves per dollar, with an increase in labor cost (from 640 to 800 hours). b) Show the new productivity, in loaves per dollar, with only an increase in investment ($100 per month more). c) Show the percent productivity change for labor and investment.
Refer to Problem 1.12. The pay will be $8 per hour for employees. Charles Lackey can also improve the yield by purchasing a new blender. The new blender will mean an increase in his investment. This added investment has a cost ••1.13 of $100 per month, but he will achieve the same output (an increase to 1,875) as the change in labor-hours. Which is the better decision? a) Show the productivity change, in loaves per dollar, with an increase in labor cost (from 640 to 800 hours). b) Show the new productivity, in loaves per dollar, with only an increase in investment ($100 per month more). c) Show the percent productivity change for labor and investment.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Transcribed Image Text:•• 1.13
for employees. Charles Lackey can also improve the yield
by purchasing a new blender. The new blender will mean an
increase in his investment. This added investment has a cost
Refer to Problem 1.12. The pay will be $8 per hour
of $100 per month, but he will achieve the same output (an
increase to 1,875) as the change in labor-hours. Which is the
better decision?
a) Show the productivity change, in loaves per dollar, with an
increase in labor cost (from 640 to 800 hours).
b) Show the new productivity, in loaves per dollar, with only an
increase in investment ($100 per month more).
c) Show the percent productivity change for labor and
investment.
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