2018 2019 Output (units) 120,000 126,000 Selling price per unit $25.00 $25.00 Input quantities: Materials (pounds) 6,000 6,000 Labor (hours) 4,800 4,875 Input prices: Materials (per pound) $5.00 $5.50 Labor (per hour) 7.00 7.50 By how much did profits change as a result of changes in productivity related to labor? a. $1,650.00 increase b. $1,237.50 decrease c. $1,237.50 increase d. $1,650.00 decrease

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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 2018      2019  
Output (units) 120,000 126,000
Selling price per unit $25.00 $25.00
     
Input quantities:    
Materials (pounds) 6,000 6,000
Labor (hours) 4,800 4,875
     
Input prices:    
Materials (per pound) $5.00 $5.50
Labor (per hour) 7.00 7.50
  1. By how much did profits change as a result of changes in productivity related to labor?
    a. $1,650.00 increase
    b. $1,237.50 decrease
    c. $1,237.50 increase
    d. $1,650.00 decrease
     
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