Interperiod Measurement of Productivity Profiles

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	185,900	217,800
Power (quantity used)	18,590	10,900
Materials (quantity used)	46,475	48,000

Required:

1. Compute the productivity profiles for each year. If required, round your answers to two decimal places.

	20x1	20x2
Power
Materials

2a. Did productivity improve?

2b. Explain why or why not.