question archive At a firm, the producer of an apple crates sold to growers, has been able, with his current equipment, to produces 200 crates per 500 logs

At a firm, the producer of an apple crates sold to growers, has been able, with his current equipment, to produces 200 crates per 500 logs

Subject:ManagementPrice: Bought3

At a firm, the producer of an apple crates sold to growers, has been able, with his current equipment, to produces 200 crates per 500 logs. He currently purchases 500 logs per day, and each log required 4 labor hours to process. He believes that he can hire a professional buyer who can buy a better-quality log at the same cost. If this is the case, he increases his production by 40 crates per 100 logs. His labor hours will increase by 6 hours per day.

What will be the impact on productivity (measured in crates per labor -hour) if the buyers are hired?

 

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