Basics of Productivity Measurement

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

	Base Year	Current Year
Output	930,000	1,050,000
Output prices	$14	$14
Input quantities:
Materials (lbs.)	186,000	1,050,000
Labor (hrs.)	93,000	525,000
Input prices:
Materials	$5	$6
Labor	$8	$8

Required:

1. Prepare a productivity profile for each year. If required, round your answers to two decimal places.

Holbrook Company
Productivity Profile
	Base Year	Current Year
Materials productivity ratio	fill in the blank 126851f9afa6fd0_1	fill in the blank 126851f9afa6fd0_2
Labor productivity ratio	fill in the blank 126851f9afa6fd0_3	fill in the blank 126851f9afa6fd0_4

2. Prepare partial income statements for each year.

Holbrook Company
Partial Income Statements
	Base Year	Current Year
Sales	$fill in the blank 9cf3ca01bf88fc9_1	$fill in the blank 9cf3ca01bf88fc9_2
Materials	fill in the blank 9cf3ca01bf88fc9_3	fill in the blank 9cf3ca01bf88fc9_4
Labor	fill in the blank 9cf3ca01bf88fc9_5	fill in the blank 9cf3ca01bf88fc9_6
Gross profit	$fill in the blank 9cf3ca01bf88fc9_7	$fill in the blank 9cf3ca01bf88fc9_8

Calculate the total change in income. If the change is negative, enter answer using a minus sign. $fill in the blank 390b6504603ffc8_1 3. Calculate the change in profits attributable to productivity changes. If the change is negative, enter answer using a minus sign. If required, round your intermediate calculations to the nearest dollar. $fill in the blank 390b6504603ffc8_2 4. Calculate the price-recovery component. If required, round your intermediate calculations to the nearest dollar. $fill in the blank 390b6504603ffc8_3