Refer to Exercise 13-27.

Required
1. Calculate Lakeside's operating income in both 2015 and 2016.
2. Calculate the growth, price-recovery, and productivity components that explain the change in operating income from 2015 to 2016.
3. Comment on your answers in requirement 2. What do each of these components indicate?

Transcribed Image Text:

2016 Number of T-shirts purchased Number of T-shirts lost Number of T-shirts sold Average selling price Average cost per T-shirt Administrative capacity in terms of number of customers 2015 200,000 2,000 198,000 S25.00 S10.00 250,000 3,300 246,700 26.00 S8.50 4,000 that can be served Administrative costs Administrative cost per customer Design staff Total design costs Design cost per employee 3,750 $1,162,500 S310 $1,200,000 S300 $250,000 $50,000 $275,000 $55,000