23. 60 BIS Ltd is a small information systems consulting firm that specialises in helping companies implement sales management software. The market for BIS's products is very competitive. To compete, BIS must deliver quality service at a low cost. BIS bills clients in terms of unites of work performed, which depends on the size and complexity of the sales management system. BIS presents the following data for 2008 and 2009: 2008 2009 Units of work performed 70 Selling price $50,000 $48.000 Software-implementation labour-hours 30,000 32,000 Cost per software-implementation labour-hour S60 $63 Software-implementation support capacity (in units of work) 90 Total cost of software-implementation support $360,000 $369,000 Software-implementation support-capacity cost per unit of work $4,000 $4,100 Number of employees doing software development 3 3 Total software development costs $375,000 $390,000 Software development cost per employee $125,000 $130,000 90 Software-implementation labour-hour costs are variable costs. software-implementation support costs for each year depend on the software-implementation capacity (defined in terms of units of work) that BIS chooses to maintain each year. It does not very with the actual units of work performed that year. At the start of each year, management uses its discretion to determine the number of software development employees. The software development staff and costs have no direct relationship with the number of units of work performed. Required: Is BIS's strategy one of product differentiation or cost leadership? Explain briefly. Calculate the growth, price-recovery, and productivity components that explain the change in operating income from 2008 to 2009. Comment on your answer in requirement 2. What do these components indicate? b. c