Question: Refer to Exercise 14- 21. Required 1. Calculate the operating income of Northland Corporation in 2011 and 2012. 2. Calculate the growth, price- recovery, and

Refer to Exercise 14- 21.

Required
1. Calculate the operating income of Northland Corporation in 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 answer in requirement 2. What do these componentsindicate?

2011 2012 1. Number of jobs billed 2. Selling price per job 3. Software-implementation labor-hours 4. Cost per software-implementation labor-hour 5. Software-implementation support capacity (number of jobs it can do) 6. Total cost of software-implementation support 7. Software-implementation support-capacity cost per job (row 6 row 5) 40 $45,000$42,000 25,000 28,000 $60 70 $224,000$252,000 $3,200 $3,600 $58 70

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