Bautista Associates is a construction engineering firm that prepares detailed construction drawings for single$-$family homes. The market for this service is very competitive. To compete successfully Bautista must deliver quality service at low cost. Bautista presents the following data for $2019$ and $2020.$

Engineering labor$-$hour costs are variable costs. Engineering support costs for each year depend on the engineering support capacity that Bautista chooses to maintain each year $($that is$,$ the number of jobs it can do each year$).$ Engineering support costs do not vary with the actual number of jobs done in a year.

Requirement $1.$ Calculate the operating income of Bautista Associates in $2019$ and $2020.$

$\backslash$table$[[,2019,2020],[$Revenues$],[$Costs$],[$Engineering labor costs$],[$Engineering support costs$],[$Total costs,,$],[$Operating income,,$]]$

Requirement $2.$ Calculate the growth, price$-$recovery, and productivity components that explain the change in operating income from $2019$ to $2020.$

$($Click to view the components you will use in your formulas.$)$

Calculate the growth component that explain the change in operating income from $2019$ to $2020.$

Begin by determining the formula to calculate the revenue effect of growth. Then enter the amounts in the formula.

$\backslash$table$[[,),=,$Revenue effect of growth$],[,),=,]]$

Next, determine the formula to calculate the cost effect of growth for variable costs. Then enter the amounts in the formula. Think carefully, based upon the information given to you, about which cost is variable.

Data table