Problem $4(20$ p$)$:

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 work with:

$\backslash$table$[[,$Last Year,Now$],[$Production $($dozen$),1,500,1,500],[$Labor $($hours$),350,325],[$Capital Investment $($$$),15,000,18,000],[$Energy $($BTU$),3,000,2,750]]$

a$)(10$p$)$ Find the productivity percentage change and fill the below table

$|$

b$)$Using below parameters calculate multifactor productivity for Browns Bakery $(10$p$)$ ; $($Round your response to three decimal places.$)$

Labor $$8$ per hour;

Capital $0\mathrm{.}83\%$ of capital invested;

Energy $$0\mathrm{.}60$ per BTU.

I$)$ Determine the multifactor productivity $($as dozen $\frac{?}{?}$$

II$)$ Determine the multifactor productivity $($as dozen$/$$$\_$ for this year.

III$)$ Determine the percent change in productivity for last year versus this year on a multifactor basis.

$7$