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Sawyer's a local bakery is worried about increased cost- particulary energy. Last year's records can provide a fairly good estimate of the parameters...
Sawyer’s a local bakery is worried about increased cost- particulary energy. Last year’s records can 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 $2,500 for modifications to the bakery’s ovens to make them more efficient. Sawyer has asked you to checked the energy savings of the new ovens and also to look over other measures of the bakery’s productivity to see if the modifications were beneficial. You have the following data to work with:
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Last year Now
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Production (dozen) 1,500 1,500
Labor (hours) 350 320
Capital Investment ($) 16,000 18,500
Energy (BTU) 3,000 2,800
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