Basics of Productivity Measurement

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

Base Year Current Year

Output 900,000 1,080,000

Output prices $15 $15

Input quantities:

Materials (lbs.) 1,200,000 1,080,000

Labor (hrs.) 300,000 540,000

Input prices:

Materials $5 $6

Labor $8 $8

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

Prepare partial income statements for each year.

Calculate the total change in income.

Calculate the change in profits attributable to productivity changes.

Calculate the price-recovery component.