Question
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
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.
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