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Angies Bakeries is wooried about increased costs. The company invested an additional $3000 to make the baker's oven more energy efficient. The ovens are supposed to be 15% more energy efficient.
Year 1 (Pre- Modifications) Year 2 (Post- Modifications)
Production ( dozens ) 1500 1500
Labor (hours) 350 325
Capital (dollars) 15000 18000
Energy (dollars) 3000 2750
a) Compute the old and new ratios for Labor productivity. Compute the percent change.
b) Compute the old and new ratios for Capital. Compute the percent change.
c) Compute the old and new ratios for energy. Compute the percent change.
d) Summarize and interpret your findings.
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