Required

Question 97
Essay

Required: a.What is the operating income for Year 1? b.What is the operating income in Year 2? c.What is the change in operating income from Year 1 to Year 2? d.What amount is the revenue effect of the growth component? e.What amount is the cost effect of the growth component? f.What is the net effect on operating income as a result of the growth component? g.What amount is the revenue effect of the price-recovery component? h.What amount is the cost effect of the price-recovery component? i.What is the net change in operating income as a result of the price-recovery component? j.What is the net effect on operating income as a result of the productivity component? a k.The change in operating income from cost leadership.l.The change in operating income due to industry wide effects.m.The effect of product differentiation on operating income and a summarization of the change in operating income between Year 1 to Year 2.