Delictrends Ltd buys T-shirts in bulk, applies its own trendsetting silk-screen designs and then sells the T-shirts to a number of retailers. Delictrends wants to be known for its trendsetting designs, and it wants every teenager to be seen in a distinctive Delictrends T-shirt. Delictrends presents the following data for its first two years of operations, 2018 and 2019: 2018 2019 1. Number of T-shirts purchased 215 000 245 000 2. Number of T-shirts discarded 15 000 20 000 3. Number of T-shirts sold (row 1 row 2) 200 000 225 000 4. Average selling price $30.00 $31.00 5. Average cost per T-shirt $15.00 $13.00 6. Administrative capacity (number of customers) 4 500 4 250 7. Administrative costs $1 633 500 $1 593 750 8. Administrative cost per customer (row 7 row 6) $363 $375 Administrative costs depend on the number of customers that Delictrends has created capacity to support, not on the actual number of customers served. Delictrends had 3600 customers in 2018 and 3500 customers in 2019.

1. Calculate Delictrends's operating profit in both 2018 and 2019.

2. Calculate the growth, price-recovery and productivity components that explain the change in operating profit from 2018 to 2019.

3. Analyse and comment on your answers to Required 2 above.