1.14 Refer to Problem 1.13E. The pay will be $8 per hour for employees. Marjatta

Viitasalo can also improve the yield by purchasing a new blender. The new blender will

mean an increase in her investment. This added investment has a cost of $100 per

month, but she will achieve the same output (an increase to 1875) as the change in

labour-hours. Which is the better decision?

a. Show the productivity change, in loaves per dollar, with an increase in labour

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 labour and investment.