Question

S20 BA360.8 Marina Alberici & | 01/31/20 10:02 PM Homework: Chapter 1 Homework Save Score: 0 of 1 pt 15 of 15 (14 complete) HW Score: 93.33%, 14 of 15 pts Problem 1.14 - Bookmatch Question Help 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 purchase the bread of their choice. Because of the size of the store, no new ovens can be added. At a staff 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, 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 $8 per hour. In addition to the labor cost, Charles also has a constant utility cost per month of $500 and a per loaf ingredient cost of $0.35. Current multifactor productivity for 640 work hours per month = loaves/dollar (round your response to three decimal places). Enter your answer in the answer box and then click Check Answer. parts 2 remaining Clear All Check Answer

Answer 1

Multifactor Productivity = Total output/ (Labor+Material+Capital)

Total monthly output = 1500 units

Labor = 640*8 = $5120

Material = 0.35$ * 1500 = $525

Overheads = $500

Productivity in terms of loaves per $ will be = 1500/(5120+525+500) = 1500/6145 = 0.244 loaves per $

The answer is 0.244 loaves per $.