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The Monterrey Company has recorded the following data 2014 2015 Output (units) 42,000 48,000 Selling price per unit $12 $12 Input quanities Materials (pounds) 8,000
The Monterrey Company has recorded the following data
| 2014 | 2015 | |
| Output (units) | 42,000 | 48,000 |
| Selling price per unit | $12 | $12 |
| Input quanities | ||
| Materials (pounds) | 8,000 | 7,500 |
| Labor (hours) | 5,000 | 6,000 |
| Input prices | ||
| Materials (per pound) | $4.00 | $5.00 |
| Labor (per hour) | $8.00 | $9.00 |
How much did profits change as a result of changes in productivity related to materials?
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Operations Management
Authors: Jay Heizer, Barry Render
11th edition
9780132921145, 132921146, 978-0133408010
