Question

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 20​% 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:

Last Year Now
Production (dozen) 1,600   1,600
Labor (hours)    340    325
Capital Investment ($)   15,000   18,000
Energy (BTU) 3,200   2,750

Energy productivity increase​ =16.36%
what is the capital productivity increase?

​(enter your response as a percentage rounded to two decimal places and include a minus sign if​ necessary).

Answer 1

OLD PRODUCTIVITY

CAPITAL = 15000
OUTPUT = 1600

PRODUCTIVITY = OUTPUT / INPUT = 1600 / 15000 = 0.1067

NEW PRODUCTIVITY

CAPITAL = 18000
OUTPUT = 1600

PRODUCTIVITY = 1600 / 18000 = 0.0889

% CHANGE

% CHANGE IN PRODUCTIVITY = ((NEW PRODUCTIVITY - OLD PRODUCTIVITY) / OLD PRODUCTIVITY) * 100 = ((0.0889 - 0.1067) / 0.1067) * 100 = -16.68

**DEPENDING ON HOW THE INTERMEDIATE CALCULATIONS ARE ROUNDED THE FINAL ANSWER CAN HAVE SLIGHT DEVIATIONS, IF THAT IS THE CASE, LEAVE A COMMENT AND I WILL GET BACK TO IT AS SOON AS POSSIBLE.