Question: Refer to Exercise 12 22 In Exercise 12 22 Stanmore

Refer to Exercise 12- 22.
In Exercise 12- 22, Stanmore Corporation makes a special- purpose machine, D4H, used in the textile industry. Stanmore has designed the D4H machine for 2013 to be distinct from its competitors. It has been generally regarded as a superior machine. Stanmore presents the following data for 2012 and 2013.

1. Calculate the operating income of Stanmore Corporation in 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 answer in requirement 2. What do these componentsindicate?

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