Analysis of growth, price-recovery, and productivity components (continuation of 13-31). Suppose that during 2011, the market for MP3 players grew 3%. All decreases in the selling price of the Mini and increases in market share (that is, sales increases greater than 3%) are the result of Music Master’s strategic actions.

Required

Calculate how much of the change in operating income from 2010 to 2011 is due to the industry-market-size factor, product differentiation, and cost leadership. How does this relate to Music Master’s strategy and its success in implementation? Explain.