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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
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 185,200 217,400 Power (quantity used) 18,520 10,900 Materials (quantity used) 46,300 47,800 Suppose the following input prices are provided for each year: 20x1 20x2 Unit price (power) Unit price (materials) $ 6 $7 20 19 6 8 Unit selling price 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 dolla amount. $ 2. Calculate the price-recovery component for 20x2. If required, round your intermediate calculations and final answers to the nearest dollar amount. $
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