2018 2019 The company has chosen a product differentiation strategy. The growth, price- 1. Units of D4H produced and sold 200 210 recovery, and productivity components of the change in operating income 2. Selling price $ 40,000 $ 42.000 from 2018 to 2019 are as follows: 3. Direct materials (kilograms) 300,000 310.000 Revenue effect of growth $ 400,000 F 4. Direct material cost per kilogram $ 8.00 $ 8.50 Cost effect of growth 120,000 5. Manufacturing capacity (units of D4H) 250 250 U 6. Total conversion costs $ 2,000,000 $ 2,025,000 $ 280,000 Change in operating income due to growth F 7. Conversion cost per unit of capacity $ 8,000 $ 8,100 8. Selling and customer service capacity 100 customers 95 customers Revenue effect of price-recovery $ 420,000 F 9. Total selling and customer service costs $ 1,000,000 S 940,500 Cost effect of price-recovery 184,500 U 10. Selling and customer-service capacity cost per customer $ 10,000 $ 9,900 $ 235,500 11. Design staff 12 12 Change in operating income due to price-recovery F 12. Total design costs $ 1,200,000 $ 1,212,000 $ 92,000 13. Design cost per employee $ 100,000 $ 101,000 Change in operating income due to productivity F Grey Corporation makes a special-purpose D4H machine used in the textile industry Grey has designed the D4H machine for 2018 to be distinct from its competitors. It has been generally regarded as a superior machine. Grey presents the following data for the years 2018 and 2019. Click the loon to view the data) (Click the icon to view the components.) Suppose that between 2018 and 2019 the market for Grey's special-purpose machines grew at 3%. All increases in market share (that is, sales increases greater than 3%) are the result of Grey's strategic actions. Required Calculate how much of the change in operating income between 2018 and 2019 is due to the industry market-size factors, cost leadership, and product differentiation. How successful has Grey been in implementing its strategy? Explain Begin by selecting the formula you will use. Then enter the amounts and calculate the change in operating income due to industry market-size factors. Determine whether the amount has a favourable or an unfavourable effect on operating income. (Hold all decimals in interim calculations. Round your final answer to the nearest whole number Label the component as favourable For unfavourable "U) Change in operating income >= - due to Industry market size x ) Before calculating the change in operating income due to product differentiation, you must calculate the growth in market share due to product differentiation. Begin by selecting the formula you will use. Then enter the amounts and calculate the growth in market share due to product differentiation. Determine whether the amount has a favourable or an unfavourable effect on operating income. (Hold all decimals in interim calculations. Round your final answer to the nearest whole number. Label the component as favourable "Por unfavourable "U") Growth in market share ) due to product differentiation - Now calculate the change in operating income due to product differentiation. Label each component as to whether the amount has a favourable effect or an unfavourable offect on operating income. (Be sure to label each component as favourable For unfavourable "U") Growth in market share due to product differentiation Change in operating income due to product differentiation Now determine the change in operating income due to cost leadership. Determine whether the amount has a favourable effect on operating income or unfavourable effect. (Be sure to label the component as favourable "For unfavourable "U". How successful has Grey been in implementing its strategy? Explain. (Round the percent to the nearest whole percentage) Grey successful in implementing its product differentiation strategy. This is shown as % of the increase in operating income during 2019 was due to product differentiation (i.e., the distinctiveness of its machines). 2018 2019 The company has chosen a product differentiation strategy. The growth, price- 1. Units of D4H produced and sold 200 210 recovery, and productivity components of the change in operating income 2. Selling price $ 40,000 $ 42.000 from 2018 to 2019 are as follows: 3. Direct materials (kilograms) 300,000 310.000 Revenue effect of growth $ 400,000 F 4. Direct material cost per kilogram $ 8.00 $ 8.50 Cost effect of growth 120,000 5. Manufacturing capacity (units of D4H) 250 250 U 6. Total conversion costs $ 2,000,000 $ 2,025,000 $ 280,000 Change in operating income due to growth F 7. Conversion cost per unit of capacity $ 8,000 $ 8,100 8. Selling and customer service capacity 100 customers 95 customers Revenue effect of price-recovery $ 420,000 F 9. Total selling and customer service costs $ 1,000,000 S 940,500 Cost effect of price-recovery 184,500 U 10. Selling and customer-service capacity cost per customer $ 10,000 $ 9,900 $ 235,500 11. Design staff 12 12 Change in operating income due to price-recovery F 12. Total design costs $ 1,200,000 $ 1,212,000 $ 92,000 13. Design cost per employee $ 100,000 $ 101,000 Change in operating income due to productivity F Grey Corporation makes a special-purpose D4H machine used in the textile industry Grey has designed the D4H machine for 2018 to be distinct from its competitors. It has been generally regarded as a superior machine. Grey presents the following data for the years 2018 and 2019. Click the loon to view the data) (Click the icon to view the components.) Suppose that between 2018 and 2019 the market for Grey's special-purpose machines grew at 3%. All increases in market share (that is, sales increases greater than 3%) are the result of Grey's strategic actions. Required Calculate how much of the change in operating income between 2018 and 2019 is due to the industry market-size factors, cost leadership, and product differentiation. How successful has Grey been in implementing its strategy? Explain Begin by selecting the formula you will use. Then enter the amounts and calculate the change in operating income due to industry market-size factors. Determine whether the amount has a favourable or an unfavourable effect on operating income. (Hold all decimals in interim calculations. Round your final answer to the nearest whole number Label the component as favourable For unfavourable "U) Change in operating income >= - due to Industry market size x ) Before calculating the change in operating income due to product differentiation, you must calculate the growth in market share due to product differentiation. Begin by selecting the formula you will use. Then enter the amounts and calculate the growth in market share due to product differentiation. Determine whether the amount has a favourable or an unfavourable effect on operating income. (Hold all decimals in interim calculations. Round your final answer to the nearest whole number. Label the component as favourable "Por unfavourable "U") Growth in market share ) due to product differentiation - Now calculate the change in operating income due to product differentiation. Label each component as to whether the amount has a favourable effect or an unfavourable offect on operating income. (Be sure to label each component as favourable For unfavourable "U") Growth in market share due to product differentiation Change in operating income due to product differentiation Now determine the change in operating income due to cost leadership. Determine whether the amount has a favourable effect on operating income or unfavourable effect. (Be sure to label the component as favourable "For unfavourable "U". How successful has Grey been in implementing its strategy? Explain. (Round the percent to the nearest whole percentage) Grey successful in implementing its product differentiation strategy. This is shown as % of the increase in operating income during 2019 was due to product differentiation (i.e., the distinctiveness of its machines)