C&A uses two steps to make a toy. Step 1 takes 20 seconds. Step 2 takes 15 seconds. Each step is staffed by one worker, for a total of two workers. Each worker is paid $15 per hour. Each toy is sold for $20. Material costs are $5 per toy and fixed costs are $500 per hour. Assume demand is unlimited. What will be the impact on C&A’s profit per hour if the processing time of step 2 is reduced to 10 seconds?
A. No impact on profit
B.124% decrease
C. Cannot be determined
D. 124% increase