Note: I have finished the first question. So please give me the details of correct answers from 2 to 4. Thank you.)

Exercise 2: Dhyanchand & Sons buys T-shirts in bulk, applies its own trendsetting silk-screen designs, and then sells the T-shirts to a number of retailers. Dhyanchand wants to be known for its trendsetting designs, and it wants every teenager to be seen in a distinctive Dhyanchand T-shirt. Dhyanchand presents the following data for its first two years of operations, 2016 and 2017. 1e Number of T-shirts purchased 2e Number of T-shirts discardede 3e Number of T-shirts sold (row 1 - (row 2) 42 Average selling price 50 Average cost per T-shirt 6 Administrative capacity (number of customers) 7 Administrative costs 8e Administrative cost per customer (row 7 - row 6) 2016 225,500 20,5004 205,000 $ 32.00 $ 17.00 4,700 $ 1,739,000 $ 3704 20172 257,000+ 24,000 233,000 $ 33.00+ $ 15.00 4,450+ $ 1,691,000+ $ 380+ Administrative costs depend on the number of customers Dhyanchand has created capacity to support, not on the actual number of customers served. Dhyanchand had 4,300 customers in 2016 and 4,200 customers in 2017. Required: 1. Is Dhyanchand's strategy one of product differentiation or cost leadership? Explain briefly. 2. Calculate Dhyanchand's operating income in both 2016 and 2017. 3. Calculate the growth, price-recovery, and productivity components that explain the change in operating income from 2016 to 2017. 4. Comment on your answers in requirement 3. What does each of these components indicate