For 1.15, which one is the correct answer.

... 1.15 Refer to Problems 1.13 and 1.14. If Charles Lackey's utility costs remain constant at $500 per month, labor at $8 per hour, and cost of ingredients at $0.35 per loaf, but Charles does not pur- chase the blender suggested in Problem 1.14. what will the productiv- ity of the bakery be? What will be the percent increase or decrease? ... 1.13 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, cus- tomers 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 differ- ently 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 addi- tional manpower. This is the only thing to be changed. If the bakery makes 1.500 loaves per month with a labor productivity of 2.344 loaves per labor-hour, how many workers will Lackey need to add? (Hint: Each worker works 160 hours per month.) Consider the following information: Productivity with purchase of blender = 0.29 loaves per dollar Productivity without purchasing blender = 0.24 loaves per dollar Determine the change increase/decrease) in productivity as shown below: Percent change in productivity =* 0.24-0.2910 0.24 -0.03 x100 0.24 100 = -20.83% Hence, there would be a decrease in productivity by 20.83% . 1.14 Refer to Problem 1.13. The pay will be $8 per hour for employees. Charles Lackey can also improve the yield by purchas- ing a new blender. The new blender will mean an increase in his investment. This added investment has a cost of $100 per month, but he will achieve the same output (an increase to 1.875) as the change in labor-hours. Which is the better decision? a) Show the productivity change, in loaves per dollar, with an increase in labor 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 labor and investment. Comments (1) Anonymous The question clearly says the Charles does not purchase the blender so the calculation should be Old Productivity = 1500 / (500 + 640*8 +0.35*1500) = 24.14% New Productivity = 1875 / (500 + 800*8 +0.35*1875) = 24.81% change in productivity - (24.81-24.14)/24.14 = 1.64% increase