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Suppose the following input prices are provided for each year: Required: $ Helena Company needs to increase its profits and so has embarked on a

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Suppose the following input prices are provided for each year: Required: $

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: Output Power (quantity used) Materials (quantity used) 20x1 184,100 23,013 36,820 20x2 216,400 11,200 47,200 Suppose the following input prices are provided for each year: Unit price (power) Unit price (materials) Unit selling price Required: 20x1 20 6 20x2 $5 19 8 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. 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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