Charles Lackey operates a bakery in Idaho Falls, Idaho. Currently, the bakery has 4 employees, each one working 160 hours per month.

Charles Lackey operates a bakery in Idaho Falls,Idaho. Currently, the bakery has 4 employees, each one working 160 hours permonth. Because of its excellent product and excellent location, demand hasincreased by 30% in the last year. On far too many occasions, customers havenot been able to purchase the bread of their choice. Because of the size of thestores, no new ovens can be added. Charles can improve the yield by one ofthese two options: (1) adding a new employee; (2) purchasing an improvedblender. A new blender means an increase in his investment. This addedinvestment has a cost of $1,200 per month. The total number of labor hoursrequired per month is 640. The pay will be $8 per hour for employees. Thebakery made 1,500 loaves this time last year. If utility costs remain constantat $500 per month, and cost of ingredients at $0.35 per loaf,What is the current multifactor productivity?

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