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At the End of 2018, Diatomic Company Implemented a New

question 90

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At the end of 2018, Diatomic Company 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: 20192018 Output 45,00054,000 Output prices $10$10 Materials (lbs.)  22,50022,950 Materials unit price $3$4 Labor (hrs.)  18,00016,875 Labor rate per hour $5$5 Power (kwh)  11,25014,625 Price per kwh $2$3\begin{array}{lrr}&2019&2018\\\text { Output } & 45,000 & 54,000 \\\text { Output prices } & \$ 10 & \$ 10 \\\text { Materials (lbs.) } & 22,500 & 22,950 \\\text { Materials unit price } & \$ 3 & \$4 \\\text { Labor (hrs.) } & 18,000 & 16,875 \\\text { Labor rate per hour } & \$ 5 & \$ 5 \\\text { Power (kwh) } & 11,250 & 14,625 \\\text { Price per kwh } & \$ 2 & \$ 3\end{array}
By how much did profit change as a result of profitability changes in power?


Definitions:

Physiological Arousal

The body's response to a stimulus, involving increased activity in various systems, such as heart rate and adrenaline production.

Intense Anger

A powerful emotion characterized by strong feelings of dissatisfaction, frustration, or hostility.

Spillover Effect

The phenomenon where an observation in one context or area influences or contributes to a reaction in another area.

Sexual Passion

Intense feelings of attraction, desire, and erotic interest towards another person.

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