Information About Holm Corporation Is as Follows -Refer to the Figure

question 40

Multiple Choice

Information about Holm Corporation is as follows:
$\begin{array}{lrr}&20 \times 1 & 20 \times 2\\\text { Output (units) } & 120,000 & 126,000 \\\text { Selling price per unit } & \$ 25 & \$ 25 \\\text { Input quantities: } & & \\\text { Materials (kg) } & 6,000 & 6,000 \\\text { Labour (hours) } & 4,800 & 4,825 \\\text { Input prices: } & & \\\text { Materials (per } \mathrm{kg} \text { ) } & \$ 5.00 & \$ 5.50 \\\text { Labour (per hour) } & \$ 7.00 & \$ 7.50\end{array}$
-Refer to the figure.By how much did profits change as a result of changes in productivity related to materials?

• A)$1,650.00 decrease
• B)$1,650.00 increase
• C)$937.50 decrease
• D)$937.50 increase