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Information about Bodacious Corporation is as follows: 2018 2019 Outputs (units) 120,000 126,000 Selling price per unit $25 $25 Input Quantities: Materials (pounds) 6,000 6,000

Information about Bodacious Corporation is as follows:

2018 2019
Outputs (units) 120,000 126,000
Selling price per unit $25 $25
Input Quantities:
Materials (pounds) 6,000 6,000
Labor (hours) 4,800 4,825
Input Prices:
Materials (per pound) $5.00 $5.50
Labor (per hour) $7.00 $7.50

By how much did profits change as a result of changes in productivity related to materials?

a. $1,650.00 increase

b. $1,650.00 decrease

c. $937.50 decrease

d. $937.50 increase

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