14-25 Analysis of growth, price-recovery, and productivity components (continuation of Exercise 14-24). (LO 5) Suppose that during 2022 the market for implementing sales management software increased by 5%, and that Haller experiences a 1% decline in prices. Assume that any further decreases in selling prices and increases in market share are strategic choices by Haller's management to implement Haller's cost leadership strategy. Required Calculate how much of the change in operating income between 2021 and 2022 is due to industry market-size factors, cost leadership, and product differentiation. How successful has Haller been in implementing its strategy? (LO 4) Haller Corporation is a small information systems consulting firm that specializes in helping companies implement sales management software. The market for Haller's products is very competitive. To compete, Haller must deliver quality service at a low cost. Haller bills clients in terms of units of work performed, which depends on the size and complexity of the sales management system. Haller presents the following data for the years 2021 and 2022. 2021 2022 60 70 $ 48,200 $ 50,000 30,000 $ 60 32,000 $63 90 90 1. Units of work performed 2. Selling price 3. Software implementation labour-hours 4. Cost per software implementation labour-hour 5. Software implementation support capacity (units of work) 6. Total cost of software implementation support 7. Software implementation support capacity cost per unit of work 8. Number of employees doing software development 9. Total software development costs 10. Software development cost per employee $360,000 $ 4,000 3 $369,000 $ 4,100 3 $375,000 $125,000 $390,000 $130,000