At the End of 2018, Cardigan Corporation Implemented a New

question 74

Multiple Choice

At the end of 2018, Cardigan Corporation 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: $\begin{array} { l }&2018&2019\\ \text { Output }&20,000&24,000\\\text { Output prices }&\$10&\$10\\\\\text { Change in profits }&&\$22,200\\\\\text { Profit-linked measurements: }\\\text { Materials } && \$, 200 \\\text { Labor } && 10,500 \\\text { Power } && (1,500) \end{array}$
What is the price-recovery component?

• A)($6,000)
• B)$16,200
• C)$6,000
• D)$22,200

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