M - X ata Table -X - X market Data Table DE 2019 2020 220 235 S 42.000 The company has chosen a product differentiation strategy. The growth, price- recovery and productivity components of the change in operating income from 2019 to 2020 are as follows: Revenue effect of growth $ 600,000 F 171,818 Cost effect of growth U $ 428,181 Change in operating income due to growth F 40,000 $ 280,000 BE ur 285.000 9.75 S S 9.00 $ 250 250 1. Units of D4H produced and sold 2. Selling price 3. Direct materials (kilograms) 4. Direct material cost per kilogram 5. Manufacturing capacity In units of D4H 6. Total conversion costs 7. Conversion cost per unit of capacity 8. Selling and customer-service capacity 9. Total selling and customer-service costs 10. Selling and customer-service capacity per customer Revenue effect of price recovery $ F S 470,000 154,318 2,000,000 $ 8,000 $ 2,025,000 8,100 Cost effect of price recovery U S $ 315,682 Change in operating income due to price recovery F 95 customers S 1,045,000 $ S 11,000 $ 90 customers 900.000 S 187.387 Change in operating income due to productivity F 10,000 Requirement Print Done Calculate how much of the change in operating income from 2019 to 2020 is due to the industry-market-size factor, product differentiation, and cost leadership. How successful has Marston been in implementing its strategy? Explain. ? . Print Done Help Me Solve This e Text Pages Clear All Check Answer Suppose that during 2020, the market for Marston's special-purpose machines grew by 6%. All increases in market share (that is, sales increases greater than 6%) are the result of Marston's strategic actions. Marston Corporation makes a special-purpose machine, D4H, used in the textile industry. Marston has designed the D4H machine for 2020 to be distinct from its competitors. It has been generally regarded as a superior machine. Marston presents the following data for 2019 and 2020. Click the icon to view the data.) (Click the icon to view additional information.) Read the requirement. Calculate how much of the change in operating income from 2019 to 2020 is due to the industry-market-size factor. Begin by selecting the formula you will use. Then enter the amounts and calculate the change in operating income due to the industry-market-size factor. Determine whether the amount has a favorable effect on operating income or unfavorable effect. (Round your answers to the nearest whole number. Label the variance as favorable (F) or unfavorable (U).) Change in operating income due to industry-market size = Before calculating the change in operating income due to product differentiation you must calculate the growth in market share due to product differentiation. Begin by selecting the formula you will use. Then enter the amounts and calculate the growth in market share due to product differentiation. Determine whether the amount has a favorable effect on operating income or unfavorable effect. (Round your answers to the nearest whole number. Label the variance as favorable (F) or unfavorable (U).) Unit increase Growth in market share Growth component from market share Total unit increase = due to product differentiation Now calculate the change in operating income due to product differentiation. Label each component as to whether the amount has a favorable effect on operating income or unfavorable effect. (Label each variance as favorable (F) or unfavorable (U).) Growth in market share due to product differentiation Change in operating income due to product differentiation Next determine the change in operating income due to cost leadership. Determine whether the amount has a favorable effect on operating income or unfavorable effect. (Label the variance as favorable (F) or unfavorable (U).) Change in operating income due to cost leadership Now calculate the change in operating income by entering the appropriate amounts. (Label each variance as favorable (F) or unfavorable (U).) Change in operating income due to industry-market-size Change in operating income due to product differentiation Change in operating income due to cost leadership Total change in operating income How successful has Mason been in implementing its strategy? Explain. (Round the percent to the nearest whole percentage.) % Mason successful in implementing its product differentiation strategy. This is shown as of the increase in operating income during 2020 was from the growth in market share due to product differentiation, i.e., the distinctiveness of its machines. M - X ata Table -X - X market Data Table DE 2019 2020 220 235 S 42.000 The company has chosen a product differentiation strategy. The growth, price- recovery and productivity components of the change in operating income from 2019 to 2020 are as follows: Revenue effect of growth $ 600,000 F 171,818 Cost effect of growth U $ 428,181 Change in operating income due to growth F 40,000 $ 280,000 BE ur 285.000 9.75 S S 9.00 $ 250 250 1. Units of D4H produced and sold 2. Selling price 3. Direct materials (kilograms) 4. Direct material cost per kilogram 5. Manufacturing capacity In units of D4H 6. Total conversion costs 7. Conversion cost per unit of capacity 8. Selling and customer-service capacity 9. Total selling and customer-service costs 10. Selling and customer-service capacity per customer Revenue effect of price recovery $ F S 470,000 154,318 2,000,000 $ 8,000 $ 2,025,000 8,100 Cost effect of price recovery U S $ 315,682 Change in operating income due to price recovery F 95 customers S 1,045,000 $ S 11,000 $ 90 customers 900.000 S 187.387 Change in operating income due to productivity F 10,000 Requirement Print Done Calculate how much of the change in operating income from 2019 to 2020 is due to the industry-market-size factor, product differentiation, and cost leadership. How successful has Marston been in implementing its strategy? Explain. ? . Print Done Help Me Solve This e Text Pages Clear All Check Answer Suppose that during 2020, the market for Marston's special-purpose machines grew by 6%. All increases in market share (that is, sales increases greater than 6%) are the result of Marston's strategic actions. Marston Corporation makes a special-purpose machine, D4H, used in the textile industry. Marston has designed the D4H machine for 2020 to be distinct from its competitors. It has been generally regarded as a superior machine. Marston presents the following data for 2019 and 2020. Click the icon to view the data.) (Click the icon to view additional information.) Read the requirement. Calculate how much of the change in operating income from 2019 to 2020 is due to the industry-market-size factor. Begin by selecting the formula you will use. Then enter the amounts and calculate the change in operating income due to the industry-market-size factor. Determine whether the amount has a favorable effect on operating income or unfavorable effect. (Round your answers to the nearest whole number. Label the variance as favorable (F) or unfavorable (U).) Change in operating income due to industry-market size = Before calculating the change in operating income due to product differentiation you must calculate the growth in market share due to product differentiation. Begin by selecting the formula you will use. Then enter the amounts and calculate the growth in market share due to product differentiation. Determine whether the amount has a favorable effect on operating income or unfavorable effect. (Round your answers to the nearest whole number. Label the variance as favorable (F) or unfavorable (U).) Unit increase Growth in market share Growth component from market share Total unit increase = due to product differentiation Now calculate the change in operating income due to product differentiation. Label each component as to whether the amount has a favorable effect on operating income or unfavorable effect. (Label each variance as favorable (F) or unfavorable (U).) Growth in market share due to product differentiation Change in operating income due to product differentiation Next determine the change in operating income due to cost leadership. Determine whether the amount has a favorable effect on operating income or unfavorable effect. (Label the variance as favorable (F) or unfavorable (U).) Change in operating income due to cost leadership Now calculate the change in operating income by entering the appropriate amounts. (Label each variance as favorable (F) or unfavorable (U).) Change in operating income due to industry-market-size Change in operating income due to product differentiation Change in operating income due to cost leadership Total change in operating income How successful has Mason been in implementing its strategy? Explain. (Round the percent to the nearest whole percentage.) % Mason successful in implementing its product differentiation strategy. This is shown as of the increase in operating income during 2020 was from the growth in market share due to product differentiation, i.e., the distinctiveness of its machines