Refer to Exercise 13-22. Suppose that the market for silk-screened T-shirts grew by 10% during 2020. All increases in sales greater than 10% are the result of Dominic’s strategic actions.

Data From Exercise 13-22

Refer to Exercise 13-21.

Data From Problem 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

Calculate the change in operating income from 2019 to 2020 due to growth in market size, product differentiation, and cost leadership. How successful has Dominic been in implementing its strategy? Explain.

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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 $