. 1-calculate the operating income of Scott company 2-calculate the growth, price recovery and productivity components that explain the change in the operating income from 2011 to 2012. 3-comment about your answer on 2. what do these components indicate?

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1. Units of Maxus produced and sold 2. Selling price 3. Direct materials used (kits*) 4. Direct material cost per kit* 5. Manufacturing capacity in kits processed 6. Total conversion costs 7. Conversion cost per unit of capacity (row 6 + row 5) 8. Selling and customer-service capacity 9. Total selling and customer-service costs 10. Selling and customer-service capacity cost per customer (row 9 + row 8) *A kit is composed of all the major components needed to produce a DVD player. 2012 8,000 $95 10,000 $32 14,000 $280,000 $20 2013 11,000 $80 11,000 $32 13,000 $260,000 $20 90 customers 90 customers $13,500 $16,200 $150 $180 1. Units of Maxus produced and sold 2. Selling price 3. Direct materials used (kits*) 4. Direct material cost per kit* 5. Manufacturing capacity in kits processed 6. Total conversion costs 7. Conversion cost per unit of capacity (row 6 + row 5) 8. Selling and customer-service capacity 9. Total selling and customer-service costs 10. Selling and customer-service capacity cost per customer (row 9 + row 8) *A kit is composed of all the major components needed to produce a DVD player. 2012 8,000 $95 10,000 $32 14,000 $280,000 $20 2013 11,000 $80 11,000 $32 13,000 $260,000 $20 90 customers 90 customers $13,500 $16,200 $150 $180

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