1. Calculate the operating income of Stanmore Corporation in 2012 and 2013. 2. Calculate the growth,...
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1. Calculate the operating income of Stanmore Corporation in 2012 and 2013. 2. Calculate the growth, price-recovery, and productivity components that explain the change in operat- ing income from 2012 to 2013. 3. Comment on your answer in requirement 2. What do these components indicate? Analysis of growth, price-recovery, and productivity components (continuation of 12-23). Suppose that during 2013, the market for Stanmore's special-purpose machines grew by 3%. All increases in market share (that is, sales increases greater than 3%) are the result of Stanmore's strategic actions. Calculate how much of the change in operating income from 2012 to 2013 is due to the industry-market- size factor, product differentiation, and cost leadership. How successful has Stanmore been in implementing its strategy? Explain. 1. Calculate the operating income of Stanmore Corporation in 2012 and 2013. 2. Calculate the growth, price-recovery, and productivity components that explain the change in operat- ing income from 2012 to 2013. 3. Comment on your answer in requirement 2. What do these components indicate? Analysis of growth, price-recovery, and productivity components (continuation of 12-23). Suppose that during 2013, the market for Stanmore's special-purpose machines grew by 3%. All increases in market share (that is, sales increases greater than 3%) are the result of Stanmore's strategic actions. Calculate how much of the change in operating income from 2012 to 2013 is due to the industry-market- size factor, product differentiation, and cost leadership. How successful has Stanmore been in implementing its strategy? Explain.
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SOLUTION Effect on operating income of the industrymarketsize factor Of the 10unit increase in sales ... View the full answer
Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0133428704
15th edition
Authors: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
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