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1. Calculate the operating income of Stanmore Corporation in 2012 and 2013. 2. Calculate the growth, price-recovery, and productivity components that explain the change

 

1. Calculate the operating income of Stanmore Corporation in 2012 and 2013. 2. Calculate the growth, price-recovery, and productivity components that explain the change in operat- ing income from 2012 to 2013. 3. Comment on your answer in requirement 2. What do these components indicate? Analysis of growth, price-recovery, and productivity components (continuation of 12-23). Suppose that during 2013, the market for Stanmore's special-purpose machines grew by 3%. All increases in market share (that is, sales increases greater than 3%) are the result of Stanmore's strategic actions. Calculate how much of the change in operating income from 2012 to 2013 is due to the industry-market- size factor, product differentiation, and cost leadership. How successful has Stanmore been in implementing its strategy? Explain.

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