E13-26 (similar to) Question Help Mason Corporation makes a special-purpose machine, D4H, used in the textile industry. Mason has designed the D4H machine for 2020 to be distinct from its competitors. It has been generally regarded as a superior machine. Mason presents the following data for 2019 and 2020. (Click the icon to view the data.) Read the requirements. (Click the icon to view additional information.) More Info Data Table - Mason produces no defective machines, but it wants to reduce direct materials usage per D4H machine in 2020. Conversion costs in each year depend on production capacity defined in terms of D4H units that can be produced, not the actual units produced. Selling and customer-service costs depend on the number of customers that Mason can support, not the actual number of customers it serves. Mason has 79 customers in 2019 and 84 customers in 2020. 1. Units of D4H produced and sold 2. Selling price 3. Direct materials (kilograms) 2019 2020 250 $ 40,000 $ 265 41,000 295,000 310,000 4. Direct material cost per kilogram $ 7.75 $ 8.50 Print Done 5. Manufacturing capacity in units of D4H 300 300 6. Total conversion costs $ 7. Conversion cost per unit of capacity $ 2,250,000 $ 7,500 $ 2,280,000 7,600 - X 8. Selling and customer-service capacity 120 customers 115 customers Requirements 9. Total selling and customer-service costs 10. Selling and customer-service capacity per customer $ 1,200,000 $ 1,127,000 $ 10,000 $ 9,800 1. Calculate the operating income of Mason Corporation in 2019 and 2020. 2. Calculate the growth, price-recovery, and productivity components that explain the change in operating income from 2019 to 2020. 3. Comment on your answer in requirement 2. What do these components indicate? Print Done Print Done