Grey Corporation makes a special-purpose D4H machine used in the textile industry. Grey has designed the D4H machine for 2021 to be distinct from its competitors. It has been generally regarded as a superior machine. Grey presents the following data for the years 2021 and 2022. (Click the icon to view the data.) (Click the icon to view the components.) Suppose that between 2021 and 2022 the market for Grey's special-purpose machines grew at 3%. All increases in market share (that is, sales increases greater than 3%) are the result of Grey's strategic actions. Required Calculate how much of the change in operating income between 2021 and 2022 is due to the industry market-size factors, cost leadership, and product differentiation. How successful has Grey been in implementing its strategy? Explain. Begin by selecting the formula you will use. Then, enter the amounts and calculate the change in operating income due to industry market-size factors. Determine whether the amount has a favourable or an unfavourable effect on operating income. (Hold all decimals in interim calculations. Round your final answer to the nearest whole number. Label the component as favourable "F" or unfavourable "U".) Change in operating income Unit increase Growth component x ( from market size Total unit increase )= due to industry market size x ( ced Management Accounting SCS 0915-126 lom Data table stid Joel D'cruz 07/03/23 4:54 PM static) Data table HW Score: 11.16%, 0.45 of 4 points 2021 2022 1. Units of D4H produced and sold 200 210 2. Selling price $ 40,000 $ est 3. Direct materials (kilograms) 300,000 42,000 310,000 The company has chosen a product differentiation strategy. The growth, price- recovery, and productivity components of the change in operating income from 2021 to 2022 are as follows: Revenue effect of growth $ 4. Direct material cost per kilogram $ 8.00 $ 8.50 est 5. Manufacturing capacity (units of D4H) 250 250 Cost effect of growth $ 400,000 F 120,000 280,000 sfu U 6. Total conversion costs $ 2,000,000 $ 2,025,000 Change in operating income due to growth F 7. Conversion cost per unit of capacity $ 8,000 $ 8,100 Revenue effect of price-recovery $ est 8. Selling and customer-service capacity 100 customers 95 customers Cost effect of price-recovery 9. Total selling and customer-service costs $ 1,000,000 $ 940,500 $ 420,000 F 184,500 235,500 U Change in operating income due to price-recovery F est 10. Selling and customer-service capacity cost per customer $ 11. Design staff 10,000 $ 12 9,900 $ 92,000 12 Change in operating income due to productivity F bun hen 12. Total design costs $ 1,200,000 $ 13. Design cost per employee $ 100,000 $ 1,212,000 101,000 ++0 Print Done Print Done