Assume that in 2016, Dubbledore Industries changed its processes and trained workers to recognize quality problems and fix them before products are finished and shipped to customers. Quality is now at an acceptable level. The selling price for its key product, RBK10, was increased in 2016 to reflect an increased price for direct materials and additional conversion costs needed to deliver a higher quality product. Sales have increased, even with the increase in price, and returns have decreased. Dubbledores managers attribute this to higher quality and a price that is still less than their main competitor, Ginko Corporation. Information related to the RBK10 product for the current period and prior period follows:

	2015	2016
Units of RBK10 produced and sold	19,000	21,500
Units returned	1,150	550
Net sales in units	17,850	20,950
Selling price	$23	$26
Direct materials (kilograms) used	47,500	51,600
Direct material cost per kilogram	$1.25	$1.35
Manufacturing capacity in units	23,000	23,000
Total conversion costs	$115,000	$149,500
Conversion cost per unit of capacity	$5	$6.5
Selling and customer-service capacity	100 customers	120 customers
Total selling and customer-service costs	$11,000	$12,600
Total selling and customer-service capacity cost per customer	$110	$105
Advertising staff	4	4
Total advertising costs	$24,000	$28,000
Advertising cost per employee	$6,000	$7,000

Conversion costs in each year depend on production capacity defined in terms of RBK10 units that can be produced, not the actual units produced. Selling and customer-service costs depend on the number of customers that Dubbledore can support, not the actual number of customers it serves. Dubbledore has 95 customers in 2015 and 115 customers in 2016. At the start of each year, management uses its discretion to determine the number of advertising staff for the year. Advertising staff and its costs have no direct relationship with the quantity of RBK10 units produced and sold or the number of customers who buy RBK10.

Required:

1. Calculate the growth (both revenue and cost effect), price-recovery (both revenue and cost effect), and productivity components that explain the change in operating income from 2015 to 2016.