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: How much profit was generated in 2015?
A) $540,000
B) $319,950
C) $220,050
D) $270,000

Question

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:  How much profit was generated in 2015?
A) $540,000 
B) $319,950 
C) $220,050 
D) $270,000

Quizplus · Accepted Answer

The profit generated in 2015 can be calculated by subtracting the total costs from the total revenue. From the data provided in the table, we can see that the total revenue is $860,000 and the total costs are $540,050. Therefore, the profit generated in 2015 is:

Profit = Total revenue - Total costs
Profit = $860,000 - $540,050
Profit = $319,950

Hence, the best choice is B, which is $319,950.

At the End of 2014, Diatomic Company Implemented a New