Information About Bodacious Corporation Is as Follows By How Much Did Profits Change as a Result of (units)

question 30

Multiple Choice

Information about Bodacious Corporation is as follows: $\begin{array}{lcr}&2018&2019\\\text { Output (units) } & 120,000 & 126,000 \\\text { Selling price per unit } & \$ 25 & \$ 25\\\\\text { Input quantities: }\\\text { Materials (pounds) }&6,000&6,000\\\text { Labor (hours) }&4,800&4,825\\\\\text { Input prices: }\\\text { Materials (per pound) }&\$5.00&\$5.50\\\text { Labor (per hour) }&\$7.00&\$7.50\end{array}$ 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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