At the end of 2018, Diatomic Company implemented a new labor process and redesigned its product...

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At the end of 2018, 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 2019, 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: Output Output prices Materials (lbs.) Materials unit price Labor (hrs.) Labor rate per hour Power (kWh) Price per kwh 2018 45,000 $10.00 22,500 $3.00 18,000 $5.00 11,250 $2.00 By how much did profit change as a result of profitability changes in labor? 2019 54,000 $10.00 22,950 $4.00 16,875 $5.00 14,625 $3.00 At the end of 2018, 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 2019, 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: Output Output prices Materials (lbs.) Materials unit price Labor (hrs.) Labor rate per hour Power (kWh) Price per kwh 2018 45,000 $10.00 22,500 $3.00 18,000 $5.00 11,250 $2.00 By how much did profit change as a result of profitability changes in labor? 2019 54,000 $10.00 22,950 $4.00 16,875 $5.00 14,625 $3.00

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Determine the change in profit as a result of productivity changes in labor Step 1 Calculate the tot... View the full answer