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As a direct result of your work, quality significantly improved during the latest year leading to an increase in sales. Sales of AllPad have increased
As a direct result of your work, quality significantly improved during the latest year leading to an increase in sales. Sales of AllPad have increased in tandem with an increase in unit price. Information about the current period (Year 5) and prior period (Year 4) follow. Assuming Titan had 70 customers in Year 4 and 80 customers in Year 5, 1. Calculate the operating income of Titan for Year 4 and Year 5 ; 2. Calculate the net increase in operating income attributable to revenue growth. 3. Calculate the cost effect of growth for direct materials. 4. Calculate the revenue effect of price recovery. 5. Calculate the cost effect of price recovery for direct materials cost. 6. Calculate the cost effects of price recovery for conversion costs. 7. Calculate the cost effect of productivity for direct materials. 8. Please comment on Titan Computer Company's performance from Year 4 to Year 5. 9. If Titan Computer Company elects not to eliminate any unused capacity, why might the company choose not to downsize? 10. As a business owner, how would you manage unused capacity? Please explain
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