# Refer to Problem 1.13. The pay will be \$8 per hour for employees. Charles Lackey can also improve

QUESTION:

Refer to Problem 1.13. The pay will be \$8 per hour for employees. Charles Lackey can also improve the yield by purchasing 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-ho Las. 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.

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