=+15-31 KKK Strategic analysis of operating profit (continuation of 15-30) OBJECTIVE 4 Refer to Problem 15-30. As a result of the actions taken, quality has significantly improved in 2015 while rework and unit costs of the Mini have decreased. CPAL has reduced manufacturing capacity because capacity is no longer needed to support rework. CPAL has also lowered the Mini’s selling price to gain market share and unit sales have increased. Information about the current period

(2015) and last period (2014) follows:

2014 2015 1 Units of Mini produced and sold 8 000 9 000 2 Selling price $45 $43