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

Question 137

Multiple Choice

Information about Holm Corporation is as follows:
20×120×2 Output (units)  120,000126,000 Selling price per unit $25$25 Input quantities:  Materials (kg)  6,0006,000 Labour (hours)  4,8004,825 Input prices:  Materials (per kg )  $5.00$5.50 Labour (per hour)  $7.00$7.50\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 labour?


A) $1,650.00 decrease
B) $1,650.00 increase
C) $1,237.50 decrease
D) $1,237.50 increase

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