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Book Show Me How Interperiod Measurement of Productivity, Profit-Linked Measurement Helena Company needs to increase its profits and so has embarked on a program to
Book Show Me How Interperiod Measurement of Productivity, Profit-Linked Measurement Helena Company needs to increase its profits and so has embarked on a program to increase its overall productivity. After one year of operation, Kent Olson, manager of the Columbus plant, reported the following results for the base period and its most recent year of operations: Output Power (quantity used) Materials (quantity used) 20x1 184,600 20x2 216,200 18,460 11,100 36,920 47,700 Suppose the following input prices are provided for each year: Unit price (power) Unit price (materials) Unit selling price Required: 20x1 20x2 $2 $3 16 6 15 1. Compute the profit-linked productivity measure. By how much did profits ifcrease due to productivity? If required, round your intermediate calculations and final answers to the nearest dollar amount. 549,660 X 2. Calculate the price-recovery component for 20x2. If required, round your intermediate calculations and final answers to the nearest dollar amount. -48,820 X Foodback Check My Work 1. PQ XP: What were the productivity profiles in the first year? Use them to compute how much material and labor would have been used in the second year given production in the second year. AQ X P: What was actually spent in the second year? (PQ-AQ) X P. What is the difference? ALL OLEL The
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