Question
Basics of Productivity Measurement Holbrook Company gathered the following data for the past two years: Base Year Current Year Output 960,000 1,050,000 Output prices $15
Basics of Productivity Measurement
Holbrook Company gathered the following data for the past two years:
Base Year | Current Year | |
Output | 960,000 | 1,050,000 |
Output prices | $15 | $15 |
Input quantities: | ||
Materials (lbs.) | 192,000 | 1,050,000 |
Labor (hrs.) | 96,000 | 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 41cd4904bfaa061_1 | fill in the blank 41cd4904bfaa061_2 |
Labor productivity ratio | fill in the blank 41cd4904bfaa061_3 | fill in the blank 41cd4904bfaa061_4 |
2. Prepare partial income statements for each year.
Holbrook Company | ||
Partial Income Statements | ||
Base Year | Current Year | |
Sales | $fill in the blank 7f7391facf9902d_1 | $fill in the blank 7f7391facf9902d_2 |
Materials | fill in the blank 7f7391facf9902d_3 | fill in the blank 7f7391facf9902d_4 |
Labor | fill in the blank 7f7391facf9902d_5 | fill in the blank 7f7391facf9902d_6 |
Gross profit | $fill in the blank 7f7391facf9902d_7 | $fill in the blank 7f7391facf9902d_8 |
Calculate the total change in income. If the change is negative, enter answer using a minus sign. $fill in the blank 5ebfe0074fadff5_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 5ebfe0074fadff5_2 4. Calculate the price-recovery component. If required, round your intermediate calculations to the nearest dollar. $fill in the blank 5ebfe0074fadff5_3
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