1. Compute the flexible / variable cost effect of the growth component and indicate favorable or unfavorable.

2. Ignoring the market growth, but considering your answer to question (a), how much of Ratliff Cos change in income from 2019 to 2020 is due to a product differentiation strategy?

3. Ignoring the market growth, but considering your answer to question (a), how much of Ratliff Cos change in income from 2019 to 2020 is due to a cost leadership strategy?

4. The industry market size for appliances increased 10% from 2019 to 2020. How much of Ratliff Cos change in income from 2019 to 2020 is due to just the industry market size factor? Make sure to indicate favorable or unfavorable.

5. Compute the cost of unused capacity for 2020

Ratliff Appliances Company makes a household appliance with model number RM16. The goal for 2020 is to reduce direct materials usage per unit. No defective units are currently produced Manufacturing conversion costs depend on production capacity defined in terms of RM16 units that can be produced. The industry market size for appliances increased 10% from 2019 to 2020 . The following additional data are available for 2019 and 2020