Interperiod Measurement of Productivity, Profit-Linked Measurement 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 184,500 216,200 Power (quantity used) 23,063 10,700 Materials (quantity used) 46,125 47,200 Suppose the following input prices are provided for each year: 20x1 20x2 Unit price (power) $ 4 S 5 Unit price (materials) 18 17 Unit selling price 10 12 Required: 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. Sfill in the blank 1 2. Calculate the price-recovery component for 20x2. If required, round your intermediate calculations and final answers to the nearest dollar amount. Sfill in the blank 2

Interperiod Measurement of Productivity, Profit-Linked Measurement 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 184,500 216,200 Power (quantity used) 23,063 10,700 Materials (quantity used) 46,125 47,200 Suppose the following input prices are provided for each year: 20x1 20x2 Unit price (power) $ 4 S 5 Unit price (materials) 18 17 Unit selling price 10 12 Required: 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. Sfill in the blank 1 2. Calculate the price-recovery component for 20x2. If required, round your intermediate calculations and final answers to the nearest dollar amount. Sfill in the blank 2

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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