Sawyer€™s, a local bakery, is worried about increased costs€”particularly energy. Last year€™s records provide a fairly good estimate of the parameters for this year. Judy Sawyer, the owner, does not believe things have changed much, but she did invest an additional $3000 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. Sawyer 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:

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Last Year Now Production (dozen) Labour (hours) Capital investment ($) Energy (BTU) 1 500 350 1 500 325 15 000 18 000 3 000 2 750