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:

20x1 20x2 Number of units produced 510,000 420,000 Labor hours used 170,000 210,000 Materials used (lbs.) 2,550,000 1,400,000 Unit selling price $20 $22 Wages per labor hour $12 $14 Cost per pound of material $3.60 $3.70

Required:

1. Calculate the cost of inputs in 20x2, assuming no productivity change from 20x1 to 20x2. If required, round your answers to the nearest dollar.

Cost of labor $ Cost of materials Total PQ cost $

2. Calculate the actual cost of inputs for 20x2. If required, round your answers to the nearest dollar.

What is the net value of the productivity changes? If required, round your answers to the nearest dollar. $

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. $

(MAINLY NEED THE BOLD ANSWERS)