The following is the financal information for KPL Company for years 2016 and 2017: 2016 2017...

 

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The following is the financal information for KPL Company for years 2016 and 2017: 2016 2017 1. Units produced and sold 1,500,000 1,750,000 2. Selling Price per unit 25 $ 23 3. Direct Material units used 4,500,000 4,375,000 4. Direct material cost per unit $ 1.75 $ 1.90 5. Manufacturing capacity 3,750,000 3,500,000 6. Conversion Costs (all manufacturing other than material costs) $ 17,000,000 $16,050,000 Required: Prepare an Income Statement for years 2016 and 2017 (side-by-side) 4 Using the information provided in the exercise # 3, and the Income Statement prepared as required: Requitred: 1. Determine the change in operating income for years 2016 and 2017 2. Calculate the following components of the change in operating income: a - Effect of Growth component b - Effect of Price-recovery component c- Effect of Productivity component 3. Present your results to the above requirements in a Strategic Analysis of Productivity table The following is the financal information for KPL Company for years 2016 and 2017: 2016 2017 1. Units produced and sold 1,500,000 1,750,000 2. Selling Price per unit 25 $ 23 3. Direct Material units used 4,500,000 4,375,000 4. Direct material cost per unit $ 1.75 $ 1.90 5. Manufacturing capacity 3,750,000 3,500,000 6. Conversion Costs (all manufacturing other than material costs) $ 17,000,000 $16,050,000 Required: Prepare an Income Statement for years 2016 and 2017 (side-by-side) 4 Using the information provided in the exercise # 3, and the Income Statement prepared as required: Requitred: 1. Determine the change in operating income for years 2016 and 2017 2. Calculate the following components of the change in operating income: a - Effect of Growth component b - Effect of Price-recovery component c- Effect of Productivity component 3. Present your results to the above requirements in a Strategic Analysis of Productivity table

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Calculation Income Statement for year 2016 and 2017 Particulars 2016 2017 Sales 1500000 x 25 each 37... View the full answer