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13-18 Strategy, balanced scorecard, merchandising operation. Roberto & Sons buys T-shirts in bulk, applies its own trendsetting silk-screen designs, and then sells the T-shirts

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13-18 Strategy, balanced scorecard, merchandising operation. Roberto & Sons buys T-shirts in bulk, applies its own trendsetting silk-screen designs, and then sells the T-shirts to a number of retailers. Roberto wants to be known for its trendsetting designs, and it wants every teenager to be seen in a distinc- tive Roberto T-shirt. Roberto presents the following data for its first two years of operations, 2010 and 2011. 1 Number of T-shirts purchased 2 Number of T-shirts discarded 2010 200,000 2011 250,000 2,000 3,300 3 Number of T-shirts sold (row 1-row 2) 198,000 246,700 4 Average selling price $25.00 $26.00 5 Average cost per T-shirt $10.00 $8.50 6 Administrative capacity (number of customers) 4,000 3,750 7 Administrative costs $1,200,000 $1,162,500 8 Administrative cost per customer (row 8 row 7) $300 $310 13-19 Strategic analysis of operating income (continuation of 13-18). Refer to Exercise 13-18. 1. Calculate Roberto's operating income in both 2010 and 2011. 2. Calculate the growth, price-recovery, and productivity components that explain the change in operat- ing income from 2010 to 2011. 3. Comment on your answers in requirement 2. What does each of these components indicate?

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