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| Teaching Since: | May 2017 |
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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
BASICS OF PRODUCTIVITY MEASUREMENT
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Holbrook Company gathered the following data for the past two years:
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|
 |
Base Year |
Current Year |
|
Output |
900,000 |
1,080,000 |
|
Output prices |
$15 |
$15 |
|
Input quantities: |
 |
 |
|
Materials (lbs.) |
1,200,000 |
720,000 |
|
Labor (hrs.) |
300,000 |
540,000 |
|
Input prices: |
 |
 |
|
Materials |
$5 |
$6 |
|
Labor |
$8 |
$8 |
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Required:
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1. Prepare a productivity profile for each year.
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2. Prepare partial income statements for each year. Calculate the total change in income.
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3. Calculate the change in profits attributable to productivity changes.
4. Calculate the price-recovery component. Explain its meaning
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