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At the End of 2014, Diatomic Company Implemented a New

Question 3

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At the end of 2014, Diatomic Company implemented a new labor process and redesigned its product with the expectation that input usage efficiency would increase. Now, at the end of 2015, 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: At the end of 2014, Diatomic Company implemented a new labor process and redesigned its product with the expectation that input usage efficiency would increase. Now, at the end of 2015, 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:   By how much did profit change as a result of profitability changes in labor? A)  $5,625 increase B)  $45,000 increase C)  $23,625 increase D)  $23,625 decrease By how much did profit change as a result of profitability changes in labor?


A) $5,625 increase
B) $45,000 increase
C) $23,625 increase
D) $23,625 decrease

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