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

question 95

Multiple Choice

Information about Harlequin Corporation is as follows: $\begin{array}{lcr}&2018&2019\\\text { Output (units) } & 40,000 & 42,000 \\\text { Selling price per unit } & \$ 25 & \$ 25\\\\\text { Input quantities: }\\\text { Materials (pounds) }&2,000&2,000\\\text { Labor (hours) }&1,600&1,625\\\\\text { Input prices: }\\\text { Materials (per pound) }&\$5.00&\$5.50\\\text { Labor (per hour) }&\$7.00&\$7.50\end{array}$ By how much did profits change as a result of changes in productivity related to materials?

• A)$550.00 decrease
• B)$312.50 decrease
• C)$550.00 increase
• D)$312.50 increase

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