Harrison Company has begun a program of continuous improvement for its operations. One of its plants reported the following results for the base period and its most recent year of operations:

Required:
1. Compute the productivity profiles for each year. Did productivity improve? Explain.
2. Compute the profit-linked productivity measure. By how much did profits increase due to productivity?
3 Calculate the price-recovery component for 2001. Explain its meaning.

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2000 2001 Output 48,000 60,000 Power (quantity used) 6,000 3,000 Materials (quantity used) 12,000 13,500 Unit price (power) $1.00 $2.00 Unit price (materials) $8.00 $10.00 Unit selling price $3.00 $4.00