For 1.15,
For old process (1500 loaves),
labor cost = 640 hours x $8 per hour =?
utility cost = $500/month
cost of ingredients = 1500 loaves x 35 per loaf =?
Now find the costs for the new process (1875 loaves)
Then find the multifactor productivity for old process and new process individually.
MFP = \frac{output}{(labor cost + utility cost + cost of ingredients)}
1.15
The number of loaves of bread made increases from 1500 (old process) to 1875 loaves (new process).
Refer to problems 1.13 and 1.14 (information provided above). 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, what would
the productivity of the bakery be? What will be the percent increase or decrease?
$\% change in productivity = \frac{new value - old value}{old value} \times 100$