Diamante Company gathered the following data for the past two years:

Required:
1. Prepare a productivity profile for each year.
2. Prepare partial income statements for each year. Calculate the total change in income.
3. Calculate the change in profits attributable to productivity changes.
4. Calculate the price-recovery component. Explain itsmeaning.

Transcribed Image Text:

Base Year Current Year Output Output prices Input quantities 600,000 $15 720,000 $15 Materials (lbs.) Labor (hrs.) 800,000 200,000 720,000 360,000 nput prices: Materials Labor S5 $8 $6 $8