Profit-Linked Productivity Measurement In 20x2, Choctaw Company implements a new process affecting labor and materials. Choctaw Company provides the following information so that total productivity can be valued: 20x120x2 Number of units 540,000 450,000 produced Labor hours used 108,000 112,500 Materials used 2,160,000 1,500,000 (lbs.) Unit selling price $20 Wages per labor $12 $14 hour Cost per pound of $3.40 $3.50 material $22 Required: 1. Calculate the cost of inputs in 20x2, assuming no productivity change from 20x1 to 20x2. Cost of labor Cost of materials Total PQ cost 2. Calculate the actual cost of inputs for 20x2. Cost of labor Cost of materials Total current cost What is the net value of the productivity changes? How much profit change is attributable to each input's productivity change? If an item is negative, use a minus (-) sign to indicate. Labor productivity change Materials productivity change $ 3. What if a manager wants to know how much of the total profit change from 20x1 to 20x2 is attributable to price recovery? Calculate the total profit change. Calculate the price-recovery component