Suppose that during 2017, the market for Stanmore's special-purpose machines grew by 3%. All increases in market share (that is, sales increases greater than 3%) are the result of Stanmore's strategic actions.

Required

Calculate how much of the change in operating income from 2016 to 2017 is due to the industry-market-size factor, product differentiation, and cost leadership. How successful has Stanmore been in implementing its strategy? Explain.