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: 20x2 Output 217,800 Power (quantity used) 10,900 Materials (quantity used) 47,200 Suppose the following input prices are provided for each year: 20x1 $2 20 10 Unit price (power) Unit price (materials) Unit selling price Required: 20x1 185,400 23,175 46,350 20x2 $3 19 12 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.
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: 20x2 Output 217,800 Power (quantity used) 10,900 Materials (quantity used) 47,200 Suppose the following input prices are provided for each year: 20x1 $2 20 10 Unit price (power) Unit price (materials) Unit selling price Required: 20x1 185,400 23,175 46,350 20x2 $3 19 12 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.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter13: The Balanced Scorecard: Strategic-based Control
Section: Chapter Questions
Problem 21P: At the end of 20x1, Mejorar Company implemented a low-cost strategy to improve its competitive...
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