Helena Company needs to increase its profits and so has embarked on a program to increase its overall productivity. After one year of operation, Kent Olson, manager of the Columbus plant, reported the following results for the base period and its most recent year of operations: 20x1 20x2 Output 184,100 216,800 Power (quantity used) 23,013 11,100 Materials (quantity used) 46,025 47,800 Suppose the following input prices are provided for each year: 20x1 $6 20 Unit price (power) Unit price (materials) Unit selling price Required: 8 20x2 $7 19 10 1. Compute the profit-linked productivity measure. By how much did profits increase due to productivity? If required, round your intermediate calculations and final answers to the nearest dollar amount. 233,600 ✓ 2. Calculate the price-recovery component for 20x2. If required, round your intermediate calculations and final answers to the nearest dollar amount.
Helena Company needs to increase its profits and so has embarked on a program to increase its overall productivity. After one year of operation, Kent Olson, manager of the Columbus plant, reported the following results for the base period and its most recent year of operations: 20x1 20x2 Output 184,100 216,800 Power (quantity used) 23,013 11,100 Materials (quantity used) 46,025 47,800 Suppose the following input prices are provided for each year: 20x1 $6 20 Unit price (power) Unit price (materials) Unit selling price Required: 8 20x2 $7 19 10 1. Compute the profit-linked productivity measure. By how much did profits increase due to productivity? If required, round your intermediate calculations and final answers to the nearest dollar amount. 233,600 ✓ 2. Calculate the price-recovery component for 20x2. If required, round your intermediate calculations and final answers to the nearest dollar amount.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Helena Company needs to increase its profits and so has embarked on a program to increase its overall productivity. After one year of operation, Kent Olson, manager of the
Columbus plant, reported the following results for the base period and its most recent year of operations:
20x1
Output
184,100
216,800
Power (quantity used)
23,013
11,100
Materials (quantity used)
46,025
47,800
Suppose the following input prices are provided for each year:
20x1
$6
20
8
Unit price (power)
Unit price (materials)
Unit selling price
Required:
20x2
$ 233,600
20x2
$7
19
10
1. Compute the profit-linked productivity measure. By how much did profits increase due to productivity? If required, round your intermediate calculations and final
answers to the nearest dollar amount.
2. Calculate the price-recovery component for 20x2. If required, round your intermediate calculations and final answers to the nearest dollar amount.
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