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 $2,500 for modifications to the bakery's ovens to make them more energy efficient. The modifications were supposed to make the ovens at least 15% more efficient. Brown has asked you to check the energy savings of the new ovens and also to look over other measures of the bakery's productivity to see if the modifications were beneficial. You have the following data to work with: Last Year 1,500 350 15,000 3,000 Now 1,500 325 17,500 2,750 Production (dozen) Labor (hours) Capital Investment ($) Energy (BTU) Energy productivity increase = 9.1 % (enter your response as a percentage rounded to two decimal places and include a minus sign if necessary). Capital productivity increase = -14.30 % (enter your response as a percentage rounded to two decimal places and include a minus sign if necessary). Labor productivity increase = (enter your response as a percentage rounded to two decimal places and include a minus sign if necessary).
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 $2,500 for modifications to the bakery's ovens to make them more energy efficient. The modifications were supposed to make the ovens at least 15% more efficient. Brown has asked you to check the energy savings of the new ovens and also to look over other measures of the bakery's productivity to see if the modifications were beneficial. You have the following data to work with: Last Year 1,500 350 15,000 3,000 Now 1,500 325 17,500 2,750 Production (dozen) Labor (hours) Capital Investment ($) Energy (BTU) Energy productivity increase = 9.1 % (enter your response as a percentage rounded to two decimal places and include a minus sign if necessary). Capital productivity increase = -14.30 % (enter your response as a percentage rounded to two decimal places and include a minus sign if necessary). Labor productivity increase = (enter your response as a percentage rounded to two decimal places and include a minus sign if necessary).
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
Related questions
Question
Transcribed Image Text: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 $2,500 for modifications to the bakery's ovens to make them
more energy efficient. The modifications were supposed to make the ovens at least 15% more efficient. Brown has asked you to check the energy savings of the new
ovens and also to look over other measures of the bakery's productivity to see if the modifications were beneficial. You have the following data to work with:
Last Year
1,500
350
15,000
3,000
Production (dozen)
Labor (hours)
Capital Investment ($)
Energy (BTU)
Energy productivity increase = 9.1 % (enter your response as a percentage rounded to two decimal places and include a minus sign if necessary).
14.30 % (enter your response as a percentage rounded to two decimal places and include a minus sign if necessary).
Capital productivity increase =
Labor productivity increase =
(enter your response as a percentage rounded to two decimal places and include a minus sign if necessary).
Now
1,500
325
17,500
2,750
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps with 3 images
Recommended textbooks for you
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.