Worried about increased costs particularly energy

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Reference no: EM132206156

?Brown's, a local? bakery, is worried about increased costs particularly energy. Last? year's records can provide a fairly good estimate of the parameters for this year. Wende? Brown, the? owner, does not believe things have changed? much, but she did invest an additional ?$2,500 for modifications to the? bakery's ovens to make them more energy efficient. The modifications were supposed to make the ovens at least 15?% more efficient. Brown has asked you to check the energy savings of the new ovens and also to look over other measures of the? bakery's productivity to see if the modifications were beneficial. You have the following data to work? with:

last yr now

production (dozen) 1600 1600

labor hours 340 325

capital investment 15000 17500

energy 3000 2750

Energy productivity increase? =%

Captial productivity increase %

labor productivity increase 5

Reference no: EM132206156

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