Brown\'s, a local bakery, is worried about increased costs particularly energy.

Question

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: Energy productivity increase = % (enter your response as a percentage rounded to two decimal places and include a minus sign if necessary). Capital productivity increase = % (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).

Explanation / Answer

Energy productivity increase= 3000-2750= 250

=250*100/3000= 8.33%

Capital productivity increase= 1500-17500= -250

=250*100/1500= -16.66%

Labor Increased= 350-325= 25

=25*100/350 =7.14%

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