Refer to the information in Exercise 13 18 In exercise Meredith Corporation
Refer to the information in Exercise 13-18.
In exercise Meredith Corporation makes a special-purpose D4H machine used in the textile industry. Meredith has designed the D4H machine for 2013 to be distinct from its competitors. It has been generally regarded as a superior machine. Meredith presents the following data for the years 2012 and 2013.
1. Calculate the change in operating income of Meredith Corporation in 2012 and 2013.
2. Calculate the growth, price-recovery, and productivity components of changes in operating income between 2012 and 2013.
3. Comment on your answer in requirement 2. What do these components indicate?
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