Homework Ch1 HW HW Score 8333 667 of 8 pts Brown has asked y

Homework: Ch1 HW HW Score: 83.33%, 6.67 of 8 pts Brown has asked you to check the energy savings of the new ovens 1,800 Labor (hours) 16,000 19,000 a minus sign if necessary).

Solution

Energy productivity last year = `1600 /3000 Dozen /BTU

Energy productivity this year = 1600/2750 Dozen/ BTU

Thus, Energy productivity this year / Energy productivity last year = (1600/2750 )/( 1600 / 3000) = 3000/2750 = 1.0909

Therefore. Energy productivity increase = ( 1.0909 – 1 ) x 100 = 9.09 %

ENERGY PRODUCTIVITY INCREASE = 9.09 %

Capital productivity last year = 1600/16000

Capital productivity this year = 1600/19000

Thus capital productivity this year/ Capital productivity last year

= ( 1600/19000)/ ( 1600/16000)

= 16000/ 19000

= 0.8421

Therefore there is reduction in capital productivity

Current productivity = 100 x 0.8421 = 84.21 % of last year’s productivity

Therefore capital productivity increase = 84.21% - 100 % = - 15.79 %

CAPITAL PRODUCTIVITY INCREASE = - 15.79%

Labor productivity last year = 1600 / 350

Labor productivity this year = 1600/ 325

Thus labor productivity this year / Labor productivity last year

= ( 1600 / 325 ) / ( 1600/ 350 )

= 350/325

= 1.0769

Labor productivity increase = ( 1.0769 – 1 ) x 100 = 7.69 %

LABOR PRODUCTIVITY INCREASE = 7.69%

ENERGY PRODUCTIVITY INCREASE = 9.09 %