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Data table (similar to) HW Score: 3.03%, 0.12 of 4 points Painter 0 10 of 1 Data table Sav etitors. It h 1. Units of D4H produced and sold 2. Selling price 3. Direct materials (kilograms) ZUZT 210 ZULL 235 41,000 $ 310,000 43,000 325,000 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: han 5%) an 4. Direct material cost per kilogram $ 7.25 $ 7.75 Revenue effect of growth $ 5. Manufacturing capacity (units of D4H) 250 250 Cost effect of growth 6. Total conversion costs $ 2,125,000 $ 2,150,000 $ 7. Conversion cost per unit of capacity $ 8,500 $ 8,600 Change in operating income due to growth 1,025,000 F 267,561 U 757,439 F How succe 8. Selling and customer-service capacity 95 customers 90 customers Revenue effect of price-recovery $ 9. Total selling and customer-service costs $ 1,045,000 $ 900,000 Cost effect of price-recovery 10. Selling and customer-service capacity cost per customer $ 11,000 $ 10,000 $ 470,000 F 109,453 U 360,547 ther the an Change in operating income due to price-recovery F the comp 11. Design staff 12 12 $ 219,764 Change in operating income due to productivity F 12. Total design costs $ 1,212,000 $ 1,218,000 13. Design cost per employee $ 101,000 $ 101,500 Alt+Q * Print Done Print Done Marshall Corporation makes a special-purpose D4H machine used in the textile industry. Marshall has designed the D4H machine for 2021 to be distinct from its competitors. It has been generally regarded as a superior machine. Marshall 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 Marshall's special-purpose machines grew at 5%. All increases in market share (that is, sales increases greater than 5%) are the result of Marshall'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 Marshall been in implementing its strategy? Explain. Begin by selecting the formula you will use. Then, enter the amounts and calculate the change in operating income due to industry market-size factors. Determine whether the amount has a favourable or an unfavourable effect on operating income. (Hold all decimals in interim calculations. Round your final answer to the nearest whole number. Label the component as favourable "F" or unfavourable "U".) Change in operating income Unit increase Growth component x( ( from market size Total unit increase )= due to industry market size = F Data table (similar to) HW Score: 3.03%, 0.12 of 4 points Painter 0 10 of 1 Data table Sav etitors. It h 1. Units of D4H produced and sold 2. Selling price 3. Direct materials (kilograms) ZUZT 210 ZULL 235 41,000 $ 310,000 43,000 325,000 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: han 5%) an 4. Direct material cost per kilogram $ 7.25 $ 7.75 Revenue effect of growth $ 5. Manufacturing capacity (units of D4H) 250 250 Cost effect of growth 6. Total conversion costs $ 2,125,000 $ 2,150,000 $ 7. Conversion cost per unit of capacity $ 8,500 $ 8,600 Change in operating income due to growth 1,025,000 F 267,561 U 757,439 F How succe 8. Selling and customer-service capacity 95 customers 90 customers Revenue effect of price-recovery $ 9. Total selling and customer-service costs $ 1,045,000 $ 900,000 Cost effect of price-recovery 10. Selling and customer-service capacity cost per customer $ 11,000 $ 10,000 $ 470,000 F 109,453 U 360,547 ther the an Change in operating income due to price-recovery F the comp 11. Design staff 12 12 $ 219,764 Change in operating income due to productivity F 12. Total design costs $ 1,212,000 $ 1,218,000 13. Design cost per employee $ 101,000 $ 101,500 Alt+Q * Print Done Print Done Marshall Corporation makes a special-purpose D4H machine used in the textile industry. Marshall has designed the D4H machine for 2021 to be distinct from its competitors. It has been generally regarded as a superior machine. Marshall 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 Marshall's special-purpose machines grew at 5%. All increases in market share (that is, sales increases greater than 5%) are the result of Marshall'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 Marshall been in implementing its strategy? Explain. Begin by selecting the formula you will use. Then, enter the amounts and calculate the change in operating income due to industry market-size factors. Determine whether the amount has a favourable or an unfavourable effect on operating income. (Hold all decimals in interim calculations. Round your final answer to the nearest whole number. Label the component as favourable "F" or unfavourable "U".) Change in operating income Unit increase Growth component x( ( from market size Total unit increase )= due to industry market size = F
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Related Book For
Management And Cost Accounting
ISBN: 9781292232669
7th Edition
Authors: Alnoor Bhimani, Srikant M. Datar, Charles T. Horngren, Madhav V. Rajan
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