Refer to the information in Exercise 13-18.

In Exercise 13-18

Required
1. Calculate the change in operating income of Grey Corporation in 2015 and 2016.
2. Calculate the growth, price-recovery, and productivity components of changes in operating income between 2015 and 2016.
3. Comment on your answer in requirement 2. What do these components indicate?

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2015 2016 1. Units of D4H produced and sold 2. Selling price 3. Direct materials (kilograms) 4. Direct material cost per kilogram 5. Manufacturing capacity (units of D4H) 6. Total conversion costs 7. Conversion cost per unit of capacity 8. Selng and customer-service capacity 9. Total selling and customer-service costs 10. Selling and customer-service capacity cost per customer 11. Design staff 12. Total design costs 13. Design cost per employee 200 40,000 300,000 8.00 250 $2,000,000 $8,000 100 customers 1,000,000 $10,000 12 1,200,000 $100,000 S42,000 310,000 S8.50 250 $2,025,000 $8,100 95customers $940,500 $9,900 12 S1,212000 $101,000