Helena Company needs to increase its profits and so has embarked on a program to increase its

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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:

...................................................2012....................2013

Output .................................. 184,320 ............... 216,000

Power (quantity used) .................. 23,040 ................ 10,800

Materials (quantity used) ............... 46,080 ............... 48,600

Required:

Compute the productivity profiles for each year. Did productivity improve? Explain.

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Cornerstones of Cost Management

ISBN: 978-1111824402

2nd edition

Authors: Don R. Hansen, Maryanne M. Mowen

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