Why do increase in company profitability often increase in proportion to payroll expenses?

Multiple Choice

Because payroll represents the activity of the business. The higher profitability often reflects an increase in labor expenses.

Because payroll represents an asset and an income of the business. The higher payroll incomes are, the higher the profitability will be$.$

Because payroll represents a liability and an expense of the business. The lower payroll expenses are, the higher the profitability will be$.$

Because payroll represents an asset and an income of the business. The lower the payroll expenses are, the higher the profitability will be$.$