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 $3,000 for modifications to the bakery’s ovens to make them more energy efficient. The modifications were supposed to make the ovens at least 15% more efficient. Brown has asked you to check the energy savings of the new ovens and also to look over other measures of the bakery’s productivity to see if the modifications were beneficial. You have the following data to work with:
LAST YEAR | NOW | |
Production (dozen) | 1,500 | 1,500 |
Labor (hours) | 350 | 325 |
Capital investment ($) | 15,000 | 18,000 |
Energy (BTU) | 3,000 | 2,750 |
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Chapter 1 Solutions
Operations Management: Sustainability and Supply Chain Management (12th Edition)
Additional Business Textbook Solutions
Horngren's Accounting (12th Edition)
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
Foundations of Finance (9th Edition) (Pearson Series in Finance)
Principles of Accounting Volume 2
Horngren's Accounting (11th Edition)
Managerial Accounting (5th Edition)
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