Sawyers, a local bakery, is worried about increased costsparticularly energy. Last years records provide a fairly good

Question:

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:

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


Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Operations Management Sustainability and Supply Chain Management

ISBN: 978-0133764345

2nd Canadian edition

Authors: Jay Heizer, Barry Render, Paul Griffin

Question Posted: