Question: Refer to Exercise 12 18 In Exercise 12 18 Ramiro

Refer to Exercise 12- 18.
In Exercise 12- 18, Ramiro & Sons buys T-shirts in bulk, applies its own trendsetting silk-screen designs, and then sells the T-shirts to a number of retailers. Ramiro wants to be known for its trendsetting designs, and it wants every teenager to be seen in a distinctive Ramiro T-shirt. Ramiro presents the following data for its first two years of operations, 2012 and 2013.

1. Calculate Ramiro‘s operating income in both 2012 and 2013.
2. Calculate the growth, price- recovery, and productivity components that explain the change in operating income from 2012 to 2013.
3. Comment on your answers in requirement 2. What does each of these componentsindicate?
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