
Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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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 $2,500 for modifications to the bakery's ovens to make them more energy efficient. The
modifications were supposed to make the ovens at least 15% more efficient. Brown has asked you to check the energy
savings of the new ovens and also to look over other measures of the bakery's productivity to see if the modifications
were beneficial. You have the following data to work with:
Last Year
1,500
350
15,000
3,000
Now
Production (dozen)
1,500
Labor (hours)
325
Capital Investment ($)
17,500
Energy (BTU)
2,750
% (enter your response as a percentage rounded to two decimal places and include
Energy productivity increase =
a minus sign if necessary).
:
>>>
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