At the End of 20X1,Carianne Corporation Implemented a New Labour

question 43

Multiple Choice

At the end of 20X1,Carianne Corporation 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: $\begin{array}{lrr}&\text {20X1}&\text {20X2}\\\text { Output (units) } & 20,000 & 24,000 \\\text { Selling price per unit } & \$ 10 & \$ 10\\\\\text { Change in profits}&\$22,200\\ \text { Profit-linked measurements:}\\\text { Materials}&\$7,200\\\text { Iahour }&10,500\\\text { Power }&(1,500) \end{array}$ What is the price-recovery component?

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

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