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 Output 185,900 20x2 217,800 Power (quantity 18,590 11,100 used) Materials (quantity 46,475 47,200 used) Suppose the following input prices are provided for each year: Unit price (power) Unit price (materials) Unit selling price Required: 20x1 $ 4 20x2 20 8 $ 5 19 10 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. 742,3 x 2. Calculate the price-recovery component for 20x2. If required, round your intermediate calculations and final answers to the nearest dollar amount. $435,6 x Feedback Check My Work 1. PQ X P: 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? 2. Compute the profitability for both years using actual costs. Compare the change in profitability to the result of Requirement 1.