Management accountinh question
complexity of the sales management system. Summet presents the following data for the years 2021 and 2022 itt (Click the Icon to vied the data:) (1) (Click the icon to view the additional information.) Requires 1. Calculate the change in operating income of Summer Corporation in 2021 and 2022 2. Calculate the growth. peice-tecovery and productivity components of changes in operating inconse between 2021 and 2022. 3. Comrnent on your answer in rogueement 2. What do these components indicate? More info Sottware implementation tabouf-tiour costs are variable costs Sottware implementation suppert costs for nach year depend on the software mplementation suppert capacty (defined in tems of units of wark) that Summer chooses to maintain each year, it does not vary with the actual units of work performed each yeac. At the start of euch year, management vies ifs discretion 10 ) determine the number of sottware-developitent employees. The software-development statl and costs have no direct relationship with the number: of units of work parformed To assist you, use the popup to identify the yarious components productivity components of changes in operating income between 2021 and 2022 (Click the icon to view the components yous of components of the formulas. Begln by determining the formula to calculate the revenue efect of arouth ins Begln by determining the formula to calculate the revenue effect of gromth. Then, enter the amounts in the formula Next, determine the formula to calculate the cost effect of growth for variable costs. Then, enter the amounts in the formula. Think, based upon the information provided fo y about which cost is variable. (Hold all docimals in interim calculatons. Round each answer to the nearest whole dollar) Ix=Costeffectofgrowthforvatiablecosis Determine the formula to calculate the cost effect of growth for fixed costs. Then, entor the amounts in the formula Calculate the cost effect of growth for conversion costs firs then for selling and customer service costs, and finaly for design costs. (If any of the amounts to be entered are zero, please enter ' 0.) effect on operating income (Labet each component as favourahlemptoent Be sure to label each component as to whecher the armount has a favourable effect or an unfavourat Calculate the price -recovery component of the change in operating income. Begin with the revenue effect of price-ecovery Selnct the formula you will need, and then ents amounts to calculate the revenus effoct of price-secovery. Next, determine the formula to calculate the cost eflect of price-recovery for variable costs. Then, enter the amounts in the formula. Think, based upon the information provic You, about which cost is variable (Round your final answer to thie nearest whole dollar) Determine the formula to calculate the cost effect of price-recovery for frod costs. Then, enter the amounts in the formula Calculate the cost effect of price-recovery for conv costs first, then for belling and customer service costs, and finally lor design costs Cost affect of pacn-recovery for fixed costs tupport conts developonent costs Calculate the not chunge in operating income dun to the prico-ricovery componient Be sure to libel each compenent as to whether the amount hat Summer Corporation is a small information systems consulting firm that specializes in halping companies implement sales management software. The market for Summer's Calculate the net change in operating income due to the price-recovery component. Be sure to label each component as to whether the amount has a favourable effect or an unfavourable affect on operating income: (Label each component as favourahlo of) or unfavourable (U)) Uarculate the productivity component of the change in operating income Begin with the cost eflect of productivity for variable costs Select the formula you will need and then onter the amounts to calculate the rovenue offect of productivity xxCosteffectofproductivityforvariablecosts= Dotermitie the formula to calculate the cost elfect of productivity for fixed costs. Then, anter the amiounts in the formula Calculate the cost etfect of productivity for conversion coste first, then for selling and customer service costs, and finally for design costs (ff any of the simounts to be entered are zaro please enter " 0 .) Cost affect of productivity for fixted costs Summer Corporation is a small information systems consulting firm that specializes in helping companies implement sales management software. The market for Sumrner's Determine the formula to calculate the cost effect of productivity for fixed costs. Then, enter the amounts in the formula Calculate the cost effect of productivity for conversion cos first, then for selling and customet service costs, and finally for design costs, (if any of the amounts to be entered are zero, please enter "0\%) Cost effect of productivity for fixed costs support costs development costs eflect on operating tingente in operating income due to the productivity component. Be sure to label each component as to whether the amount has a favourable or an unfavourable Change in operating licome don to produstivity Requirement 3. Comment on your answer in requirement 2 . What do these components indicate? The analysis of operating income indicates that a significant amount of the company was able to continue to while growing sales. In operating income resulled from Summet's strategy The complexity of the sales management system. Summet presents the following data for the years 2021 and 2022 itt (Click the Icon to vied the data:) (1) (Click the icon to view the additional information.) Requires 1. Calculate the change in operating income of Summer Corporation in 2021 and 2022 2. Calculate the growth. peice-tecovery and productivity components of changes in operating inconse between 2021 and 2022. 3. Comrnent on your answer in rogueement 2. What do these components indicate? More info Sottware implementation tabouf-tiour costs are variable costs Sottware implementation suppert costs for nach year depend on the software mplementation suppert capacty (defined in tems of units of wark) that Summer chooses to maintain each year, it does not vary with the actual units of work performed each yeac. At the start of euch year, management vies ifs discretion 10 ) determine the number of sottware-developitent employees. The software-development statl and costs have no direct relationship with the number: of units of work parformed To assist you, use the popup to identify the yarious components productivity components of changes in operating income between 2021 and 2022 (Click the icon to view the components yous of components of the formulas. Begln by determining the formula to calculate the revenue efect of arouth ins Begln by determining the formula to calculate the revenue effect of gromth. Then, enter the amounts in the formula Next, determine the formula to calculate the cost effect of growth for variable costs. Then, enter the amounts in the formula. Think, based upon the information provided fo y about which cost is variable. (Hold all docimals in interim calculatons. Round each answer to the nearest whole dollar) Ix=Costeffectofgrowthforvatiablecosis Determine the formula to calculate the cost effect of growth for fixed costs. Then, entor the amounts in the formula Calculate the cost effect of growth for conversion costs firs then for selling and customer service costs, and finaly for design costs. (If any of the amounts to be entered are zero, please enter ' 0.) effect on operating income (Labet each component as favourahlemptoent Be sure to label each component as to whecher the armount has a favourable effect or an unfavourat Calculate the price -recovery component of the change in operating income. Begin with the revenue effect of price-ecovery Selnct the formula you will need, and then ents amounts to calculate the revenus effoct of price-secovery. Next, determine the formula to calculate the cost eflect of price-recovery for variable costs. Then, enter the amounts in the formula. Think, based upon the information provic You, about which cost is variable (Round your final answer to thie nearest whole dollar) Determine the formula to calculate the cost effect of price-recovery for frod costs. Then, enter the amounts in the formula Calculate the cost effect of price-recovery for conv costs first, then for belling and customer service costs, and finally lor design costs Cost affect of pacn-recovery for fixed costs tupport conts developonent costs Calculate the not chunge in operating income dun to the prico-ricovery componient Be sure to libel each compenent as to whether the amount hat Summer Corporation is a small information systems consulting firm that specializes in halping companies implement sales management software. The market for Summer's Calculate the net change in operating income due to the price-recovery component. Be sure to label each component as to whether the amount has a favourable effect or an unfavourable affect on operating income: (Label each component as favourahlo of) or unfavourable (U)) Uarculate the productivity component of the change in operating income Begin with the cost eflect of productivity for variable costs Select the formula you will need and then onter the amounts to calculate the rovenue offect of productivity xxCosteffectofproductivityforvariablecosts= Dotermitie the formula to calculate the cost elfect of productivity for fixed costs. Then, anter the amiounts in the formula Calculate the cost etfect of productivity for conversion coste first, then for selling and customer service costs, and finally for design costs (ff any of the simounts to be entered are zaro please enter " 0 .) Cost affect of productivity for fixted costs Summer Corporation is a small information systems consulting firm that specializes in helping companies implement sales management software. The market for Sumrner's Determine the formula to calculate the cost effect of productivity for fixed costs. Then, enter the amounts in the formula Calculate the cost effect of productivity for conversion cos first, then for selling and customet service costs, and finally for design costs, (if any of the amounts to be entered are zero, please enter "0\%) Cost effect of productivity for fixed costs support costs development costs eflect on operating tingente in operating income due to the productivity component. Be sure to label each component as to whether the amount has a favourable or an unfavourable Change in operating licome don to produstivity Requirement 3. Comment on your answer in requirement 2 . What do these components indicate? The analysis of operating income indicates that a significant amount of the company was able to continue to while growing sales. In operating income resulled from Summet's strategy The
