32. Information about Kerkonian Corporation is as follows:

2018 2019 Output (units)14,00015,000Selling price per unit$8.00$8.00 Change in profits$5,687.50 Profit-linked measurements: Materials $(50.00)Labor (87.50)

What is the price-recovery component?

a. $5,825.00

b. $137.50

c. $5,687.50

d. $5,550.00

33. At the end of 2018, Diatomic Company implemented a new labor process and redesigned its product with the expectation that input usage efficiency would increase. Now, at the end of 2019, the president of the company wants an assessment of the changes on the company's productivity. The data needed for the assessment are as follows:

2018 2019 Output45,00054,000Output prices$10.00$10.00Materials (lbs.)22,50022,950Materials unit price$3.00$4.00Labor (hrs.)18,00016,875Labor rate per hour$5.00$5.00Power (kwh)11,25014,625Price per kwh$2.00$3.00

By how much did profit change as a result of profitability changes in labor?

a. $45,000 increase

b. $23,625 increase

c. $23,625 decrease

d. $5,625 increase

34. Question Content Area

At the end of 2018, Diatomic Company implemented a new labor process and redesigned its product with the expectation that input usage efficiency would increase. Now, at the end of 2019, the president of the company wants an assessment of the changes on the company's productivity. The data needed for the assessment are as follows:

2018 2019 Output45,00054,000Output prices$10.00$10.00Materials (lbs.)22,50022,950Materials unit price$3.00$4.00Labor (hrs.)18,00016,875Labor rate per hour$5.00$5.00Power (kwh)11,25014,625Price per kwh$2.00$3.00

How much profit was generated in 2019?

a. $540,000

b. $270,000

c. $220,050

d. $319,950