Refer to Exercise 14- 15. Required 1. Calculate Raneiros operating income in both 2011 and 2012. 2. Calculate the growth, price- recovery, and productivity components

Refer to Exercise 14- 15.

Required

1. Calculate Raneiro’s operating income in both 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 answers in requirement 2. What does each of these componentsindicate?

2011 2012 1. Number of T-shirts purchased 2. Number of T-shirts discarded 3. Number of T-shirts sold (row 1 row 2) 4. Average selling price 5. Average cost per T-shirt 6. Administrative capacity (number of customers) 7. Administrative costs 8. Administrative cost per customer (row 7row 6) 213,060 12,060 201,000 $28.00 $13.00 4,300 253,000 14,500 238,500 $29.00 $11.00 4,050 $1,419,000 $1,377,000 $330 $340