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 $2,500 for modifications to the bakery's ovens to make them more energy efficient. The modifications were supposed to make the ovens at least 15% more efficient. Brown has asked you to check the energy savings of the new ovens and also to look over other measures of the bakery's productivity to see if the modifications were beneficial. You have the following data to work with: Last Year Now Production (dozen) 1,600 1,600 Labor (hours) 350 325 Capital Investment ($) 16,000 18,500 Energy (BTU) 3,000 2,800 Energy productivity increase = % (enter your response as a percentage rounded to two decimal places and include a minus sign if necessary).

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

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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	Now
Production (dozen)	1,600	1,600
Labor (hours)	350	325
Capital Investment ($)	16,000	18,500
Energy (BTU)	3,000	2,800

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

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