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Administrative costs depend on the number of customers Gianni has created capacity to support, not on theactual number of customers served. Gianni had 3,600 customers
Administrative costs depend on the number of customers Gianni has created capacity to support, not on theactual number of customers served. Gianni had 3,600 customers in 2019 and 3,500 customers in 2020. 13-22. Strategic analysis of operating income (continuation of 13-21). Refer to Exercise 13-21. Required 1. Calculate Gianni's operating income in both 2019 and 2020. 2. Calculate the growth, price-recovery, and productivity components that explain the change in operating income from 2019 to 2020. 3. Comment on your answers in requirement 2. What does each of these components indicate? 13-23. Analysis of growth, price-recovery, and productivity components (continuation of 13-21 and 13-22). Refer to Exercise 13-21. Suppose that the market for silk-screened T-shirts grew by 10% during 2020. Allincreases in sales greater than 10% are the result of Gianni's strategic actions. Required Calculate the change in operating income from 2019 to 2020 due to growth in market size, product differentiation, and cost leadership. How successful has Gianni been in implementing its strategy? Explain
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