Score: 0 of 1 pt 170120 (19complete) HW Score: 95%, 19 of 20 Problem 1.14 Questi

Question

Score: 0 of 1 pt 170120 (19complete) HW Score: 95%, 19 of 20 Problem 1.14 Question Help Charies Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent product and excellent location 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 be baked at one time. This new process will require that the avens be loaded by hand, requiring be baked at one time. This new process will require that the ovens dernand has increased by 25% n te ast year On-to-, occa in antres tae rotem t diflerendly so that mare loarves of bread made in order to meet the increased demand. Th employee suggested ways to load the ovens the only producion change that will be additional manpower. This is In addion to the labor cost, Charies eiso has a constant uality cost per month of $750 and a per loalt ingredient cost of $0.50 bakery currently makes 1,800 loaves per month. Employees are paid 58 per hour. Current multifactor productivity for 640 work hours per month 0266 loavesiollar (round your response to three decimal pleces). After increasing the number of work hours to 800 per month, the multifactor productivityloavesldollar (round your response to thredecimal plece

Explanation / Answer

After increase of numner of hours to 800 per month, new multifactor productivity will be given as follows:

New Labor = $800*8 = $6400

Overhead cost = $750

Material requirement will increase by (800/640 - 1) = 25%.

Material cost = 1800 * 1.25 * .5 = $1125

output will also increase by 25%

Output = 1800 * 1.25 = 2250 loaves

Total input cost = $6400 + $1125 + $750 = $8275

Mulifator productivity = 2250/8275 = .272 loaves/dollar

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.