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I was wondering if I could get help with numbers 2 and 3? Stanmore Corporation makes a special-purpose machine, D4H, used in the textile industry.
I was wondering if I could get help with numbers 2 and 3?
Stanmore Corporation makes a special-purpose machine, D4H, used in the textile industry. Stanmore has designed the D4H machine for 2013 to be distinct from ns competitors. It has been generally regarded as a superior machine. Stanmore presents the following data for 2012 and 2013 2012 2013 1. Units of D4H produced and sold 2. Selling price 3. Direct materials (kilograms) 4. Direct material cost per kilogram 5. Manufacturing capacity in units of D4H 6. Total conversion costs 7. Conversion cost per unit of capacity (row 6+row S 8. Selling and customer-service capacity 9. Total selling and customer-service costs 210 $42,000 310,000 $8.50 S40,000 300,000 S8 250 $2,000,000 $8,000 00 customers $1,000,000 $10,000 $8,100 we-en-s //O 10. Selling and customer-service capacity cost per customer 59,900 row 9+row 8) Stanmore produces no defective machines, but it wants to reduce direct materials usage per D4H machine in 2013. 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 Stanmore can support, not the actual number of customers it serves Stanmore has 75 customers in 2012 and 80 customers in 2013. 1. Calculate the operating income of Stanmore Corporation in 2012 and 2013 Calculate the growth, price-recovery, and productivity components that explain the change in operat- ing income from 2012 to 2013 3) Comment on your answer in requirement 2 What do these components indicate? 4 Suppose that during 2013, the market for Stanmore's special-purpose machines grew by 3%. Al increases in market Calculate how much of the change in operating income from 2012 to 2013 is due to the industry-market- share (that is, sales increases greater than 3%) are the result of Stanmore's strategic actions. size factor, product differentiation, and cost leadership. How successful has Stanmore been in implementing its strategy? ExplainStep by Step Solution
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