PLEASE OPEN IMAGE AND ANSWER THE QUESTIONS for $2020$ to be distinct from its competitors. It has been generally regarded as a superior machine. Merrimack presents the following data

for $2019$ and $2020.$

$($Click the icon to view the data.$)$

$($Click the icon to view additional information.$)$

sales increases greater than $3\%)$ are the result of Merrimack's strategic actions.

Read the requirement.

Calculate how much of the change in operating income from $2019$ to $2020$ is due to the industry$-$market$-$size factor.

nearest whole number. Label the variance as favorable $($F$)$ or unfavorable $($U$).)$

$1$

Data table

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

Cost effect of growth

Change in operating income due to growth

Revenue effect of price recovery

Cost effect of price recovery

Change in operating income due to price recovery

Change in operating income due to productivity

$ $720,000,F$

$208\mathrm{.}696U$

F

$ $250,000,F$

$180,544,$

$F$

F

Requirement

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 Merrimack been in implementing its strategy? Explain.