Question: Refer to Exercise 12 26 In Exercise 12 26 Southland

Refer to Exercise 12- 26.
In Exercise 12- 26, Southland Corporation is a small information-systems consulting firm that specializes in helping companies implement standard sales-management software. The market for Southland’s services is very competitive. To compete successfully, Southland must deliver quality service at a low cost. Southland presents the following data for 2012 and 2013.

1. Calculate the operating income of Southland 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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