Refer to Exercise 13-21.

Data From Exercise 13-21

Dominic & Sons buys T-shirts in bulk, applies its own trendsetting silk-screen designs, and then sells the T-shirts to a number of retailers. Dominic wants to be known for its trendsetting designs, and it wants every teenager to be seen in a distinctive Dominic T-shirt. Dominic presents the following data for its first 2 years of operations, 2019 and 2020.

Required

1. Calculate Dominic’s operating income in both 2019 and 2020.
2. Calculate the growth, price-recovery, and productivity components that explain the change in operating  income from 2019 to 2020.
3. Comment on your answers in requirement 2. What do each of these components indicate?

Transcribed Image Text:

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 7, row 6) 2019 $ $ 225,500 20,500 205,000 32.00 17.00 4,700 $1,739,000 $ 370 2020 257,000 24,000 233,000 33.00 15.00 4,450 $1,691,000 S 380 $ ssss $