Clearly label computations and answers to problems. Financial statements should be prepared in proper form. SHOW ALL WORK!

	2012	2013
1. Number of jobs billed	40	55
2. Selling price per job	$45,000	$42,000
3. Software-implementation labor-hour	25,000	28,000
4. Cost per software-implementation labor-hour	$58	$60
5. Software-implementation support capacity (number of jobs it can do)	70	70
6. Total cost of software-implementation support	$224,000	$252,000
7. Software-implementation support-capacity cost per job (row 6/row 5)	$3,200	$3,600

1.) Calculate the operating income of Southland Corporation in 2012 and 2013.

2.) Calculate the growth, price-recovery, and productivity components that explain the change in operating income from 2012 to 2013.

3.) Comment on your answer in requirement 2. What do these components indicate?