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in the fourth quarter of last year, Colditz Company embarked on a major effort to improve...

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Accounting

in the fourth quarter of last year, Colditz Company embarked ona major effort to improve productivity. It redesigned products,reengineered manufacturing processes, and offered productivityimprovement courses. The effort was completed in the last quarterof the current year. The controller’s office has gathered thefollowing year-end data to assess the results of this effort:

Current
Year		Prior
Year
Units manufactured and sold24,00019,200
Selling price of the product$53$53
Direct materials used (pounds)15,30014,300
Cost per pound of materials$10$8
Direct labor hours6,5507,300
Hourly wage rate$25$20
Power (kwh)1,600800
Cost of power per kwh$3$3

Required

1. Prepare a summary contribution income statement for each ofthe 2 years, and calculate the change in operating income.

2. Compute the partial operational productivity ratios for eachproduction factor in each year.

3. Compute the partial financial productivity ratios for eachproduction factor in each year.

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