Information About Cabot Corporation Is as Follows What Is the Price-Recovery Component?
A)$137

Multiple Choice

Information about Cabot Corporation is as follows: $\begin{array}{lrr}&\text {20X1}&\text {20X2}\\\text { Output (units) } & 14,000 & 15,000 \\\text { Selling price per unit } & \$8 & \$ 8\\\\\text { Change in profits}&\$5,687.50\\ \text { Profit-linked measurements:}\\\text { Materials}&\$(50.00) \\\text { Iahour }&(87.50) \end{array}$ What is the price-recovery component?

A) $137.50
B) $5,550.00
C) $5,687.50
D) $5,825.00