Big Curl T-Shirt Company sells a variety of T-shirts. Big Curl presents the following data for its first two years of operations, 2018 and 2019. For simplicky, assume that all purchasing and selling costs are included in the average cost per T-shirt and that each customer buys one T-shirt Req (Click the icon to view the data:) 1. Calculate Big Curl's operating income in both 2018 and 2019 2. Calculate the growth, price-recovery, and productivity components that explain the change in operating income from 2018 to 2019 3. Comment on your answer in requirement 2. What does each of these components indicate? 2018 2019 Number of T-shirts purchased 210,000 255.000 Number of T-slot 2,600 Number of shirts cold Average Average cost per T-s 207,400 4,100 250,900 $ 27.00 $ 30 00 S 10.00 $ 9.50 Administrative capacity in terms of number of customers Administrative costs Administrative cost per customer D 1.500 3,950 $ 1405,000 5 330 5 8 1,343,000 340 8 5 448,000 5 450,000 $ 56,000 $ 61000 Ictal design costs Design cost per employee Requirement 1. Calculate Big Cuffs operating income in both 2018 and 2019 Costs I shirts purchased Admini Design costs Total costs 2018 2019 Operating Income Requirement 2. Calculate the growth price-recovery and productivity components that explain the change in operating income from 2018 to 2019. To assist you, use the popup to identify the various components of the formulas (Click them to view the components you will use in your fammals) Begin by determining the formula to calculate the revenue effect of growth. Then, enter the amounts in the formula. 1x 1x Ravenue affect of growth Next, determine the formula to calculate the cost effect of growth for variable costs. Then, enter the amours in the formals Think, based upon the information provided to you, about which cost is varisble (Hold all decimals in interim calculations Round each arever to the nearest whole dollar. Cost effect of growth for variable costs ' Determine the formule to calculate the cost effect of growth for fixed orsts. Then, enter the amounts in the formule. Calculate the cost effect of growth for administrative costs first, and then for design costs. (If any of the amounts to be entered are zero, please enter "") X X 1x Cost effect of growth for fixed costs adminierative co design Calculate the nat change in operating income due to the growth component Be sure to labal each component as to whether the amount has a favourable effect or an unfavourable effect on operating income (Labal aach component as favourable (F) or unfavourable (U))) f growt Calw of growth Change in operating income due to growth Calculate the pricey component of the change in opening income. Begin with the even effect of price-recovery. Select the formule you will need, and then enter the amounts to calcadate the revenue affect of price-overy 3 3x 1x Revenus efect of pricey Next, determine the formula to calculate the cost effect of price recovery for variable costs. Then, enter the amounts in the formula. Think, based upon the information provided to you, about which cost is variable. (Round your final answer to the nearest whole dolor.) Cost effect of price recovery for variable costs Determine the formula to calculate the cost effect of price-recovery for thred costs. Then, enter the amounts in the formula. Calculate the cost effect of price recovery for administrative costs first, then for design costs. 3 Jx Cost effect of price recovery for fixed costs administrative costs design coats Calculate the net change in persing income due to the price-ecovery component. Be sure to label each component to whether the amount to a courable effect an unfavourable effect on operating income (Label each component evourable (F) or unfavorable (U)) Revenue effect of price-recovery Cost effect of price-recovery Change in operating income due to price recovery Calculate the productivity component of the change in operating income. Begin with the cost effect of productivity for variable costs. Select the formula you will need, and than enter the amounts to calculate the revenue effect of productivity. 1x Cost alect of productivity for valabile coats Determine the formula to calculate the cost effect of productivity for fixed costs. Then enter the amounts in the formula. Calculate the cost effect of productivity for administrative costs first, and then for design costs. If any of the amounts to be entered are zero, please enter "V") 1x Cost effect of productivity for forecasts ministical design costs Calculate the net change in operating Income due to the productivity component. Be sure to label each component as to whether the amount has a favourable effect or an unfavourable effect on operating Income if there is no effect, enter a zero and leave the dropdown blank. If there is an effect, label the components favourable (F) or unfavourable (U).) Change in operating income due to productivity Requirement 3. Comment on your answer in requirement 2. What does each of these components indicate? The analysis of operating income indicates that a significant amount of the In operating Income resulted from Uig Curt's strategy. The company was able to continue to while growing sales. Lig Curt