Holbrook Company gathered the following data for the past two years:

Required:
1. Prepare a productivity profile for each year.
2. Prepare partial income statements for each year. Calculate the total change in income.
3. Calculate the change in profits attributable to productivity changes.
4. Calculate the price-recovery component. Explain its meaning.

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Base Year 900,000 S15 Current Year Output Output prices Input quantities 1,080,000 Materials (lbs.) Labor (hrs.) 1,200,000 300,000 1,080,000 540,000 Input prices Materials Labor S5 $8 S6 S8