Analysis of growth, price-recovery, and productivity components (continuation of Exercise 13-24). Suppose that during 2013 the market for implementing sales management software increased by 5%, and that Snyder experiences a 1% decline in prices. Assume that any further decreases in selling prices and increases in market share are strategic choices by Snyder€™s management to implement Snyder€™s cost leadership strategy.
In exercise

REQUIRED
Calculate how much of the change in operating income between 2012 and 2013 is due to industry market-size factors, cost leadership, and product differentiation. How successful has Snyder been in implementing its strategy?

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2012 2013 1. Units of work performed 2. Selling price 3. Software implementation labour-hours 4. Cost per software implementation labour-hour 5. Software implementation support capacity units of work) 6. Total cost of software implementation support 7. Software implementation support capacity cost per unit of work 8. Number of em 9. Total software development costs 10. Software development cost per employee 70 50,000 48,200 32,000 S 60 63 90 S360,000 $369,000 4,000 4,100 60 30,000 90 ployees doing software development S375,000 $%390,000 $125,000 $130,000