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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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