Prepare partial income statements for each year

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Question - Basics of Productivity Measurement Holbrook Company gathered the following data for the past two years:

 

Base Year

Current Year

Output

900,000

1,080,000

Output prices

$15

$15

Input quantities:

 

 

Materials (lbs.)

1,200,000

1,080,000

Labor (hrs.)

300,000

540,000

Input prices:

 

 

Materials

$5

$6

Labor

$8

$8

Required -

1. Prepare productivity profile for each year. If required, round your answers to two decimal places.

2. Prepare partial income statements for each year.

3. Calculate the total change in income.

4. Calculate the change in profits attributable to productivity changes.

5. Calculate the price-recovery component.

Reference no: EM132858340

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