Natalie operates a bakery in Regina, SK. Because of her excellent customer service, the demand has increased 30% in the last year.
To meet this increase in the demand, Natalie has to change the way ovens are loaded with loaves of bread, so more loaves can be loaded at each time. This requires additional man power.
The bakery makes 1500 loaves per month with a labour productivity of 2.344 loaves per labour-hour. If her utility costs remain constant at $500 per month, labour $8 per hour and cost of ingredients $0.35 per loaf.
What are the old process and new process productivity of the bakery? What will be the percent increase or decrease?