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1) A fast-food restaurant serves hamburgers, cheeseburgers, and chicken sandwiches. The restaurant counts a cheeseburger as equivalent to 1.25 hamburgers and chicken sandwiches as 0.8 hamburger. Current employment is five full-time employees (each working a 40-hour week).

a) If the restaurant sold 700 hamburgers, 900 cheeseburgers, and 500 chicken sandwiches in one week, what is its productivity?

b) What would its productivity have been if it had sold the same number of sandwiches (2,100) but the mix was 700 of each type?

c) What is the percent change in productivity between the two scenarios using a) as the base? Explain why there is a difference in the productivity even though the total time worked and the total number of sandwiches are the same between the two scenarios.

Solution Preview

(a) The total labor hours is 5*40=200 per week. The total output is
700+900*1.25+500*0.8=2225 hamburgers.
Thus the productivity is 2225/200=11.125 ...

Solution Summary

Productivity is investigated. The solution is detailed and well presented.