Analysis of growth, price-recovery, and productivity components (continuation of 13-19). Suppose that between 2006 and 2007 the market for Aleredith’s special-purpose machines grew at 3%, and that industrywide selling prices increased by 2.5%.

Required Calculate how much of the change in operating income between 2006 and 2007 is due to industrywide factors, cost leadership, and product differentiation. How successful has Meredith been in implementing its strategy?