Refer to Exercise 14- 15. Required 1. Calculate Raneiros operating income in both 2011 and 2012. 2.

Refer to Exercise 14- 15.

Required

1. Calculate Raneiro’s operating income in both 2011 and 2012.

2. Calculate the growth, price- recovery, and productivity components that explain the change in operating income from 2011 to 2012.

3. Comment on your answers in requirement 2. What does each of these componentsindicate?

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2011 2012 1. Number of T-shirts purchased 2. Number of T-shirts discarded 3. Number of T-shirts sold (row 1 row 2) 4. Average selling price 5. Average cost per T-shirt 6. Administrative capacity (number of customers) 7. Administrative costs 8. Administrative cost per customer (row 7row 6) 213,060 12,060 201,000 $28.00 $13.00 4,300 253,000 14,500 238,500 $29.00 $11.00 4,050 $1,419,000 $1,377,000 $330 $340