Question: Browns, a local bakery, is worried about increased costs particularly energy. Last years records can provide a fairly good estimate of the parameters for this

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 workwith:

Production (dozen) Labor (hours) Capital investment (S) Energy (BTU) LAST YEAR 1,500 350 15,000 3,000 NOW 1,500 325 18,000 2,750

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