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At the End of 20X1, Gilley Company Implemented a New

question 72

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At the end of 20X1, Gilley Company implemented a new labour process and redesigned its product with the expectation that input usage efficiency would increase. Now, at the end of 20X2, 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:
20×120×2 Output 30,00036,000 Output prices $10$10 Materials (kg)  15,00015,300 Materials unit price $3$4 Labour (hrs.)  12,00011,250 Labour rate per hour $5$5 Power (kwh)  7,5009,750 Price per kwh $2$3\begin{array}{lrr}&20 \times 1 & 20 \times 2\\\text { Output } & 30,000 & 36,000 \\\text { Output prices } & \$ 10 & \$ 10 \\\text { Materials (kg) } & 15,000 & 15,300 \\\text { Materials unit price } & \$ 3 & \$ 4 \\\text { Labour (hrs.) } & 12,000 & 11,250 \\\text { Labour rate per hour } & \$ 5 & \$ 5 \\\text { Power (kwh) } & 7,500 & 9,750 \\\text { Price per kwh } & \$ 2 & \$ 3\end{array}
-Refer to the figure.By how much did profit change as a result of profitability changes in power?


Definitions:

Refractory Period

A time period following an action or physiological event during which a second action or event cannot be initiated.

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A phase right after being stimulated in which a muscle or nerve cannot respond to additional stimulation.

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