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 $

Increase in the production of energy means that the energy was saved

Labor productivity also increased

Explanation:

Change in energy producton

Previous Year: (1,500x12)/3,000

=18,000/3,000

=6.0 loaves per unit

Current Year: (1500*12)/2,750

=18,000/2,750

=6.55 loaves per unit

The above calculation indicates a positive change in energy production. This means that there was some degree of energy saving.

Change in labor

Previous Year:  (1500x12)/350

=18,000/350

= 51.43 loaves/labor hour

This Year: (1500x12)/325

= 18,000/325

= 55.38 loaves/labor hour

This calculation also signifies an increase in labor productivity.

Change in Investment

Previous Year:  (1500x12)/15000

=18,000/15,000

= 1.2 loaves/$ investment

This Year : (1500x12)/18000

=18,000/18,000

= 1.0 loaves/$ investment

Investment is lowered which is a positive sign.

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