# solution

Charles Lackey operates a bakery in idaho Falls, Idaho Because of its excellent product and excellent location demand has increased by 35% in the last year On far too many occasions, customers have not been able to purchase the bread of their choice. Because of these 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 boked at one time. This new process will require that the avens be loaded by hand, requiring additional manpower This is the only thing to be changed the bakery currently makes 1,500 loaves per month The pay will be s8 per hour for employees and each employee works 160 hours per month

Charles Lackey can also improve the yield by purchasing a new blender The new blender will mean an increase in his investment. This new blinder wil mean an increase in tes costs of \$150 per month, but he will achieve the same new output an increase to 2.025.00) as the change in labor hours
a) Current productivity for 640 work hours = 0,293 loaves dollar (round your response to three decimal places)
if Chartes chooses to increase the number of work hours to 84 in order to employ the new oven toading technique, then the productivity is = 2030 loveditor (round your response to three decimal places)
b. if Charles instead chooses to purchase a new blender (wtule holding labor constant at 640 hours at \$8 per hour), then the productivity is = 388 loaves dollar (round your raponte do three decimal places)