Refer to Exercise 14- 21.

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

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2011 2012 1. Number of jobs billed 2. Selling price per job 3. Software-implementation labor-hours 4. Cost per software-implementation labor-hour 5. Software-implementation support capacity (number of jobs it can do) 6. Total cost of software-implementation support 7. Software-implementation support-capacity cost per job (row 6 row 5) 40 $45,000$42,000 25,000 28,000 $60 70 $224,000$252,000 $3,200 $3,600 $58 70