Marlin Company manufactures a DVD player called Orlicon. (Click the icon to view additional information.) As a result of the actions taken, quality has significantly improved in 2017 while rework and unit costs of the Orlicon have decreased. Marlin has reduced manufacturing capacity because capacity is no longer needed to support rework. Marlin has also lowered the Orlicon's selling price to gain market share and unit sales have increased. Information about the current period (2017) and last period (2016) follows E: (Click the icon to view the information.) (Click the icon to view additional information.) Read the requirements. Requirement 1. OMIT - NOT REQUIRED Requirement 2. Calculate the productivity component of the change in operating income from 2016 to 2017 To assist you, use the popup to identify the various components of the formulas. (Click to view the components you will use your formulas.) Calculate the productivity component of the change in operating income. Begin with the cost effect of productivity for direct material costs. Select the formula you will need and then enter the amounts to calculate the revenue effect of price recovery. (Click to view the components you will use in your formulas.) ( ) x Cost effect of productivity for direct material costs ) x 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 growth for conversion costs first, then for selling and customer service costs. (For amounts with a 50 balance, make sure to enter "0" in the appropriate cell. Complete all input cells.) ) X ( ) Cost effect of productivity for fixed costs conversion costs selling and customer-service costs ( ) x Calculate the net change in operating income due to the productivity component. Be sure to label each component as to whether the amount has a favorable effect on operating income or unfavorable effect. (For amounts with a $0 balance, make sure to enter "0" in the appropriate cell. If an amount is zero, leave the label blank.) Direct material costs Conversion costs Selling and customer-service costs Change in operating income due to productivity Reference last period Marlin Company manufactures a DVD player called Orlicon. (Click the icon to view additional information.) As a result of the actions taken, quality has significantly improved in 2017 while rework and unit costs of the Orlicon have decreased. Marlin has reduced manufacturing capacity because capacity is no longer needed to support rework. Marlin has also (2016) follows. F: (Click the ico (Click the ico Read the require A Actual units of capacity in 2016 B Actual units of capacity in 2017 C Actual units of input used to produce 2016 output D Actual units of input used to produce 2017 output E Actual units of output sold in 2016 F Actual units of output sold in 2017 G Input price in 2016 H Input price in 2017 | Price per unit of capacity in 2016 J Price per unit of capacity in 2017 K Selling price in 2016 L Selling price in 2017 M Units of input required to produce 2017 output in 2016 N Units of capacity required to produce 2017 output in 2016 Requirement 1. OMIT - NOT REQUIRED Requirement 2. Calculate the productivity component of the change in operating income from 2016 to 2017 To assist you use the popup to identify the various components of the formulas. (Click to view the components you will use in your formulas.) Print Done fect of price recovery. Calculate the productivity component of the change in operating income. Begin with the cost effect of pl (Click to view the components you will use in your formulas.) - X Data Table Cost effect of productivity ) X 2017 9.000 For amounts with a $0 balance, make sure to enter "0" in the appropriate cell. Complete all input cells 81 12,000 29 14,000 More Info - X Jblan 308,000 ( 2016 Determine the formula to calculate the cost effect of productivity for fixed costs. Then, enter the amoun 1. Units of Orlicon produced and sold 5,000 Cost effect of productivi 2. Selling price $ 99 $ ( x convers 3. Direct materials used (kits*) 7,000 selling 4. Direct material cost per kit* $ 29 $ 5. Manufacturing capacity in kits processed 19.000 Calculate the net change in operating income due to the productivity component. Be sure to label each 6. Total conversion costs $ 418,000 $ Direct material costs 7. Conversion cost per unit of capacity (row 6 = row 5) $ 22 $ Conversion costs x 8. Selling and customer-service capacity 95 customers Selling and custo More Info 9. Total selling and customer-service costs $ 16,150 $ Change in opera 0. Selling and customer-service capacity per customer (row 9 = row 8) $ 170 $ Requirement 3. Conversion costs in each year depend on production capacity defined in terms of kit is composed of all the major components needed to produce a DVD player. kits that can be processed, not the actual kits started. Selling and customer-service costs depend on the number of customers that Marlin can support, not the actual number of customers it serves. Marlin has 77 customers in 2016 and 84 customers Print Done in 2017 22 95 customers 21,850 230 The company sells the player to discount stores throughout the country. This player is significantly less expensive than similar products sold by Marlin's competitors, but the Orlicon offers just DVD playback, compared with DVD and Blu-ray playback offered by competitor Riley Manufacturing. Furthermore, the Orlicon has experienced production problems that have resulted in significant rework costs. Riley's model has an excellent reputation for quality Print Done Marlin Company manufactures a DVD player called Orlicon. (Click the icon to view additional information.) As a result of the actions taken, quality has significantly improved in 2017 while rework and unit costs of the Orlicon have decreased. Marlin has reduced manufacturing capacity because capacity is no longer needed to support rework. Marlin has also lowered the Orlicon's selling price to gain market share and unit sales have increased. Information about the current period (2017) and last period (2016) follows E: (Click the icon to view the information.) (Click the icon to view additional information.) Read the requirements. Requirement 1. OMIT - NOT REQUIRED Requirement 2. Calculate the productivity component of the change in operating income from 2016 to 2017 To assist you, use the popup to identify the various components of the formulas. (Click to view the components you will use your formulas.) Calculate the productivity component of the change in operating income. Begin with the cost effect of productivity for direct material costs. Select the formula you will need and then enter the amounts to calculate the revenue effect of price recovery. (Click to view the components you will use in your formulas.) ( ) x Cost effect of productivity for direct material costs ) x 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 growth for conversion costs first, then for selling and customer service costs. (For amounts with a 50 balance, make sure to enter "0" in the appropriate cell. Complete all input cells.) ) X ( ) Cost effect of productivity for fixed costs conversion costs selling and customer-service costs ( ) x Calculate the net change in operating income due to the productivity component. Be sure to label each component as to whether the amount has a favorable effect on operating income or unfavorable effect. (For amounts with a $0 balance, make sure to enter "0" in the appropriate cell. If an amount is zero, leave the label blank.) Direct material costs Conversion costs Selling and customer-service costs Change in operating income due to productivity Reference last period Marlin Company manufactures a DVD player called Orlicon. (Click the icon to view additional information.) As a result of the actions taken, quality has significantly improved in 2017 while rework and unit costs of the Orlicon have decreased. Marlin has reduced manufacturing capacity because capacity is no longer needed to support rework. Marlin has also (2016) follows. F: (Click the ico (Click the ico Read the require A Actual units of capacity in 2016 B Actual units of capacity in 2017 C Actual units of input used to produce 2016 output D Actual units of input used to produce 2017 output E Actual units of output sold in 2016 F Actual units of output sold in 2017 G Input price in 2016 H Input price in 2017 | Price per unit of capacity in 2016 J Price per unit of capacity in 2017 K Selling price in 2016 L Selling price in 2017 M Units of input required to produce 2017 output in 2016 N Units of capacity required to produce 2017 output in 2016 Requirement 1. OMIT - NOT REQUIRED Requirement 2. Calculate the productivity component of the change in operating income from 2016 to 2017 To assist you use the popup to identify the various components of the formulas. (Click to view the components you will use in your formulas.) Print Done fect of price recovery. Calculate the productivity component of the change in operating income. Begin with the cost effect of pl (Click to view the components you will use in your formulas.) - X Data Table Cost effect of productivity ) X 2017 9.000 For amounts with a $0 balance, make sure to enter "0" in the appropriate cell. Complete all input cells 81 12,000 29 14,000 More Info - X Jblan 308,000 ( 2016 Determine the formula to calculate the cost effect of productivity for fixed costs. Then, enter the amoun 1. Units of Orlicon produced and sold 5,000 Cost effect of productivi 2. Selling price $ 99 $ ( x convers 3. Direct materials used (kits*) 7,000 selling 4. Direct material cost per kit* $ 29 $ 5. Manufacturing capacity in kits processed 19.000 Calculate the net change in operating income due to the productivity component. Be sure to label each 6. Total conversion costs $ 418,000 $ Direct material costs 7. Conversion cost per unit of capacity (row 6 = row 5) $ 22 $ Conversion costs x 8. Selling and customer-service capacity 95 customers Selling and custo More Info 9. Total selling and customer-service costs $ 16,150 $ Change in opera 0. Selling and customer-service capacity per customer (row 9 = row 8) $ 170 $ Requirement 3. Conversion costs in each year depend on production capacity defined in terms of kit is composed of all the major components needed to produce a DVD player. kits that can be processed, not the actual kits started. Selling and customer-service costs depend on the number of customers that Marlin can support, not the actual number of customers it serves. Marlin has 77 customers in 2016 and 84 customers Print Done in 2017 22 95 customers 21,850 230 The company sells the player to discount stores throughout the country. This player is significantly less expensive than similar products sold by Marlin's competitors, but the Orlicon offers just DVD playback, compared with DVD and Blu-ray playback offered by competitor Riley Manufacturing. Furthermore, the Orlicon has experienced production problems that have resulted in significant rework costs. Riley's model has an excellent reputation for quality Print Done