K The VaporX manufactures an entry-level hoverboard, HOV-X Pursuing a cost-leadership strategy, the company has tried to improve quality and reduce costs. As a result of the actions taken over the last year, quality has significantly improved in 2020 while rework and unit costs of the HOV-X have decreased. VaporX has reduced manufacturing capacity because capacity is no longer needed to support rework. VaporX has also lowered HOV-X's selling price to gain market share and unit sales have increased Information about the current period (2020) and last period (2019) follows (Click the icon to view the information for 2020 and 2019) (Click the icon to view additional information) (Click the icon to view operating income for 2019 and 2020) (Click the icon to view the components to explain changes in operating income) Suppose that during 2020, the market for hoverboards increased 20% All increases in market share (that is, sales increases greater than 20%) and decreases in the selling price of HOV-X are the result of VaporX's strategic actions First, calculate how much of the change in operating income from 2019 to 2020 is due to the industry-market-size factor, product differentiation, and cost leadership (Do not round Intermediary calculations Only round the amount you input in the cell to the nearest dollar) Change due to industry market size Change due to product differentiation Change due to cost leadership Change in operating income How does this relate to VaporX's strategy and its success in implementation? Explain VaporX was successful in implementing its by a growth in the overall market size strategy. Th in operating income during 2020 was due to its prices to gain market share that might also benefit it in future periods VaporX's change in operating income in 2020 nufactures an entry-level hoverboard, HOV-X. Pursuing a cost-leadership mpany has tried to improve quality and reduce costs. As a result of the ver the last year, quality has significantly improved in 2020 while rework to More info (Click the icon to view additi (Click the icon to view opera Conversion costs in each year depend on production capacity defined in terms of kits that can be processed, not the actual kits started. Selling and customer-service costs depend on the number of customers that VaporX can support, not the actual number of customers it serves. VaporX has 75 customers in 2019 and 80 customers in 2020. -X o view the co 2020, the m share (that is ling price of I to De Print Done successful in implementing its It by a growth in the overall market size. strategy. The in operating income during 2- its prices to gain market share that might also benefit it in future periods. Va Reference OW OV 2019 2020 20 Revenues 400,000 $ 595,000 sha ling Costs Direct material costs 162,000 189,000 Manufacturing conversion costs 255,000 150,000 Selling and customer service costs 18,050 21,850 435,050 360,850 Total costs $ (35,050) $ 234,150 Operating income Reference VaporX has calculated the following growth, price-recovery, and productivity components that explain the change in operating income from 2019 to 2020: nt. Revenue effect of growth $ 300,000 F 121,500 Cost effect of growth 178,500 Change in operating income due to growth F Revenue effect of price recovery $ 105,000 U Cost effect of price recovery 3,800 U come during 108,800 Change in operating income due to price recovery U re periods. Direct material costs $ 94,500 F Conversion costs 105,000 F 0 Selling and customer-service costs C $ 199,500 Change in operating income due to productivity