competitors. It has been generally regarded as a superior machine. Memorial presents the following data for the years $2021$ and $2022.$

$($Click the icon to view the data.$)$

$($Click the icon to view the components.$)$

Suppose that between $2021$ and $2022$ the market for Memorial's special$-$purpose machines grew at $3\%.$ All increases in market share $($that is$,$ sales increases

greater than $3\%)$ are the result of Memorial's strategic actions.

Required

Calculate how much of the change in operating income between $2021$ and $2022$ is due to the industry market$-$size factors, cost leadership, and product

differentiation. How successful has Memorial been in implementing its strategy? Explain.

The company has chosen a product differentiation strategy. The growth, price$-$

recovery, and productivity components of the change in operating income

from $2021$ to $2022$ are as follows:

Revenue effect of growth

Cost effect of growth

Change in operating income due to growth

Revenue effect of price$-$recovery

Cost effect of price$-$recovery

Change in operating income due to price$-$recovery

Change in operating income due to productivity