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= Homework: HW4: 12-33,34,35,36 Question 2, P12-34 (book/static) Part 1 of 25 HW Score: 0%, 0 of 10 points Points: 0 of 3 O Save Scott Company manufactures a DVD player called Orlicon, (Click the icon to view additional information.) As a result of the actions taken, quality has significantly improved in 2017 while rework and unit costs of the Orlicon have decreased. Scott has reduced manufacturing capacity because capacity is no longer needed to support rework. Scott has als Next question bn's selling price to gain market share and unit sales have increased. Information about the current period (2017) and last period (2016) follows. (Click the icon to view the information.) (Click the icon to view additional information.) Dand the Diamante HO Requirement 1. Calculate operating income of Scott Company for 2016 and 2017. (Use parentheses or a minus sign for a loss.) 2016 Revenues Costs Direct material costs Manufacturing conversion costs Selling and customer service costs Total costs Operating income (loss) More info - X More info Next question hd unit sales have increa The company sells the player to discount stores throughout the country. This player is significantly less expensive than similar products sold by Scott's competitors, but the Oricon offers just DVD playback, compared with DVD and Blu-ray playback offered by competitor Nomad Manufacturing. Furthermore, the Orlicon has experienced production problems that have resulted in significant rework costs. Nomad's model has an excellent reputation for quality. . Conversion costs in each year depend on production capacity defined in terms of kits that can be processed, not the actual kits started. Selling and customer-service costs depend on the number of customers that Scott can support, not the actual number of customers it serves. Scott has 140 customers in 2016 and 160 customers in 2017. Print Done Data table 2016 2017 - X Requirements 1. Units of Orlicon produced and sold 16,000 22,000 2. Selling price $ 95 $ BO 3. Direct materials used (kits) 20,000 22,000 4. Direct material cost per kit $ 32 $ 32 5. Manufacturing capacity in kits processed 28,000 26.000 6. Total conversion costs $ 560,000 $ 520,000 7. Conversion cost per unit of capacity (row 6 + row 5) $ 20 $ 20 8. Selling and customer-service capacity 180 customers 180 customers 9. Total selling and customer-service costs $ 27,000 $ 32,400 10. Selling and customer-service capacity per customer (row 9 + row 8) $ 150 $ 180 * A kit is composed of all the major components needed to produce a DVD player. 1. Calculate operating income of Scott Company for 2016 and 2017. 2. Calculate the growth, price-recovery, and productivity components that explain the change in operating income from 2016 to 2017 3. Comment on your answer in requirement 2. What do these components indicate? Print Done