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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:

	20x1	20x2
Output	184,900	216,200
Power (quantity used)	23,113	10,500
Materials (quantity used)	46,225	47,200

Suppose the following input prices are provided for each year:

	20x1	20x2
Unit price (power)	$ 2	$ 3
Unit price (materials)	18	17
Unit selling price	8	10

Required:

1. Compute the profit-linked productivity measure. By how much did profits increase due to productivity? If required, round your intermediate calculations and final answers to the nearest dollar amount. $fill in the blank 1

2. Calculate the price-recovery component for 20x2. If required, round your intermediate calculations and final answers to the nearest dollar amount. $fill in the blank 2