Question: A baker, has been able, with his current equipment, to produce 350 pancakes per 100 eggs. He currently purchased 100 eggs per day, and each
A baker, has been able, with his current equipment, to produce 350 pancakes per 100 eggs. He currently purchased 100 eggs per day, and each egg requires 5 labor-hours to process. He believes that he can hire a professional buyer who can buy a better-quality egg at the same cost. If this is the case, he can increase his production to 380 pancakes per 100 eggs. His labor-hours will increase by 5 hours per day. What will be the impact on productivity (measured in crates per labor-hour) if the buyer is hired?
Select one:
a. Increase by approx 5.5%
b. Increase by approx 6.5%
c. Increase by approx 7.5%
d. Increase by approx 8.5%
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