Question

   Last Year   Now
Production (dozen)   1,500   1,500
Labor (hours)   350   325
Capital Investment ($)   16,000   18,500
Energy (BTU)   3,000   2,800

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 $2,500 for modifications to the bakery's ovens to make them more energy efficient. The modifications were supposed to make the ovens at least 20% more efficient. Brown has asked you to check the energy savings of the new ovens and also to look over other measures of the bakery's productivity to see if the modifications were beneficial. You have the following data to work with: Production (dozen) Labor (hours) Capital Investment ($) Energy (BTU) Last Year 1,500 350 16,000 3,000 Now 1,500 325 18,500 2.800 Energy productivity increase = 7.17 % (enter your response as a percentage rounded to two decimal places and include a minus sign if necessary).

Please answer and show all work.

Answer 1

Energy productivity last year = (1500*12)/3000 =6 loaves/BTU

Energy productivity Now = (1500*12)/2800 =6.43 loaves/BTU

Percentage change =[ (6.43-6)/6]*100% =0.07167 *100%

ercentage change =7.17%

KINDLY RATE THE ANSWER AS THUMBS UP. THANKS A LOT

Answer 2

But why 1500 multiply with 12 as there is no explanation of calculating the month