Suppose that during 2016, the market for ZP98 grew 8%. All increases in market share (that is,

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Suppose that during 2016, the market for ZP98 grew 8%. All increases in market share (that is, sales increases greater than 8%) are the result of Dransfield's strategic actions.

In Exercise 13-31

Suppose that during 2016, the market for ZP98 grew 8%.

Required
Calculate how much of the change in operating income from 2015 to 2016 is due to the industry market-size factor, product differentiation, and cost leadership. How does this relate to Dransfield's strategy and its success in implementation? Explain.

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Related Book For  book-img-for-question

Cost Accounting A Managerial Emphasis

ISBN: 978-0133138443

7th Canadian Edition

Authors: Srikant M. Datar, Madhav V. Rajan, Charles T. Horngren, Louis Beaubien, Chris Graham

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